Macro Economics

Stock vs Flow
Final goods vs Intermediate goods

Faculty Name: Student Name:

Mr. Aviral Mishra Nikhil Yadav
Assistant Professor PG/25/053
CONTENT

• Stock v/s Flow

• Final goods v/s Intermediate goods
Stock v/s Flow
• Stock is measured at one specific time and represent a quantity
existing at that point in time, which may have accumulated in the
past.

• Flow variable is measured over an interval of time. Therefore a

flow would be measured in pre unit of time.
 Stock Flow
It refers to value of variable at a point of time. It refers to value of variable at a period of time.

Stock is not time dimensional. Flow is time dimensional.

(measured at a specific point of time) (measured at per hour, month or year)

Stock impact the flow. Greater the stock of capital, Flow impacts the stock. Greater the flow of income,
greater the flow of goods and services. greater is the stock of wealth of people.

Example: Bank deposit , population of country . Example: Interest on bank deposit ,

No. of birth per year, per day, per month.
Final goods v/s Intermediate goods

• Final goods refer to those which are used either for consumption
or for investment.

• Intermediate goods refers to those goods which are either for

resale or for further production in the same year.
 Final goods Intermediate goods
Goods purchased by consumer households as Goods purchased for resale.
they are meant for final consumption. Example: milk purchased by dairy shop.
Example: milk, juice, cold drinks etc.

Goods purchased by firm for capital formation Goods purchased for further production.
or investment. Example: wood purchased for making
Example: machinery purchased by a firm. furniture.

• It must be noted that final goods are neither resold nor used for
any further transformation in process of production.
thank you….