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Dynamics of Accumulation Stocks are accumulations. The difference between the inflows and
outflows of a stock accumulates, altering the level of the stock variable. The process of
accumulation gives stocks inertia and memory and creates delays. It is important to understand
the relationship between flows and the behavior of stocks intuitively. The goal is to develop your
intuition about stocks and flows. The top graph below shows the behavior of the two flows, or
rates: the inflow (the solid line) and outflow (dashed line) for the stock. Draw the trajectory of the
stock given the inflow and outflow rates shown. Assume the initial quantity in the stock is 100
units. You can use the graph provided below to draw on. Draw on your computer or by hand(and
take the picture) and upload it.

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Dynamics of Accumulation Stocks are accumulations The diffe.pdf

  • 1. Dynamics of Accumulation Stocks are accumulations. The difference between the inflows and outflows of a stock accumulates, altering the level of the stock variable. The process of accumulation gives stocks inertia and memory and creates delays. It is important to understand the relationship between flows and the behavior of stocks intuitively. The goal is to develop your intuition about stocks and flows. The top graph below shows the behavior of the two flows, or rates: the inflow (the solid line) and outflow (dashed line) for the stock. Draw the trajectory of the stock given the inflow and outflow rates shown. Assume the initial quantity in the stock is 100 units. You can use the graph provided below to draw on. Draw on your computer or by hand(and take the picture) and upload it.