Asked by Kiirt Giosk on May 19, 2024
Verified
Identify an example of a stock variable.
A) The growth in investment in an economy
B) The change in the price level in an economy over the years
C) The number of unemployed people in an economy in a particular year
D) The increase in the money supply in an economy
E) The fall in consumer spending during two consecutive years
Stock Variable
A quantity measured at one specific time, representing a certain amount accumulated up to that time.
Money Supply
The total amount of monetary assets available in an economy at a specific time.
Price Level
A composite measure reflecting the prices of all goods and services in the economy relative to prices in a base year.
- Contrast stock variables with flow variables in the realm of economics.
Verified Answer
RQ
Randy QuesenberryMay 19, 2024
Final Answer :
C
Explanation :
A stock variable is a measure of a quantity at a particular point in time, and C, the number of unemployed people in an economy in a particular year, is a quantity that can be measured at a specific point in time. The other options, A, B, D, and E, are all flow variables, which are measures of a quantity over a period of time.
Learning Objectives
- Contrast stock variables with flow variables in the realm of economics.