| Question | 5. Distinguish between Stock and Flow. Give an example of each. |
| Class | Class 12 |
| Subject | Economics (Macroeconomics) |
| Category | Class 12 Economics Solutions Sandeep Garg |
Sandeep Garg Macroeconomics Class 12 Solutions Circular flow of Income – Short Questions
Q.5 Distinguish between Stock and Flow. Give an example of each.
| BASIS | STOCK | FLOW |
| Meaning | Refers to those variables which are measured at a point of time. | Refers to those variables which are measured over a period of time. |
| Time dimension | Do not have time dimensions. | Have time dimension. It is measured over a period of time. |
| Concept | It is a Static concept. | It is a Dynamic concept as it has time dimensions for the measurement. |
| Examples | MONEY SUPPLY | NATIONAL INCOME |
Short Questions – Sandeep Garg Macroeconomics Class 12 Solutions Circular Flow of Income
- Explain Circular flow of income in two sector economy.
- What are the different phases of a circular flow of income.
- What is meant by circular flow of income? Distinguish between Real flow and Money flow.
- “Households and Firms depend on each other in the circular flow of income. Justify the statement in case of a two-sector model.
- Distinguish between Stock and Flow. Give an example of each.
- Discuss briefly, the circular flow of income in a two sector economy with the help of a suitable diagram.