Consumption is considered which type of economic variable?

Consumption is classified as a flow variable because it represents the amount of goods and services that households consume over a specific period of time, usually measured on an annual or quarterly basis. This means that consumption is continually occurring and can vary from one period to another based on income, preferences, and economic conditions.

In contrast, stock variables refer to quantities measured at a specific point in time, such as wealth or capital. These variables remain constant until there is a change in the amount. Since consumption is dynamic and reflects ongoing economic activity rather than a snapshot at a moment in time, it is correctly identified as a flow variable.

Understanding this distinction is crucial in macroeconomics, as it influences how we analyze economic activity and measure economic performance over intervals.