Lato-kosero

Concept of stock variable and flow variable  Those variable whose values are measures from particular point of time is known as stock variable such as weight of a car, water in a tank, etc. Similarly, in macroeconomics we have lots of stock variables such like supply of money, the deposits in the bank, the amount of wealth possess by a person, etc.  Those variable whose values are measured from particular period of time such as speed of a car during ten minutes, etc. is known as flow variable. In macro economics national income, consumption, saving, investment and rate of interest are all flow variables. Concept of endogenous and exogenous variable:  The variable whose values are determined with in the model are known as endogenous variable. Eg. In two sector economy Y= C + I. Y is endogenous variable.  Similarly, those variables whose values are given outside model are known as exogenous variable. The values of exogenous variable are given. By changing