Answer to Question #130828 in Macroeconomics for Sibusiso

Question

Which of the following represents a stock variable

a wealth, saving and unemployment
b Gold reserves held by the South African Reserve Bank, and investment
C income,profit and investment
C wealth, assets and liabilities

Answer 1

Stock variables refer to units that can be quantified at a single point in time. The unit of measure does not depend on the period at which the quantification is taking place. From the list above, items in C (wealth, assets, and liabilities) are stock variables. Items in the other categories are flow variables as the units of measurement can be estimated over time.