I want to understand the difference between static and dynamic terms and models. Because, most of the scholars in economic use both terms without clear idea on them.
From the engineering point of view, all structures are subjected to dynamic actions. If acceleration is zero, these actions become static and therefore the mass won't be considered.
A system is dynamic if its behavior at a given instant depends not only on the present inputs but also on the past inputs. A dynamic system is said to have memory or inertia. A dynamic system is most often described by one or several differential equation, one or several difference equations, one or several algebraic equations with a time lag.
In a static system, the state and the output at a given instant depends only on the input at this instant. The relation between the input and the output is then given by one or several algebraic equations. If a static system does not have memory, it does not mean that it does not evolve over time. We can see that the output y(t) of the static system y(t) = 5u(t) evolves proportionally to its input u(t).