Final answer:
In SAS, macro variable references are replaced with their values before the program is compiled, during the macro pre-processing phase.
Step-by-step explanation:
When you submit a program in SAS that includes references to macro variables, the references are replaced with macro variable values before compilation of the program.
This process is part of the macro pre-processing phase where the SAS macro processor replaces the macro variable references with their respective values before the traditional compilation and execution phases of the SAS program. This allows for dynamic substitution of text within the code, which can be leveraged to create more flexible and reusable programs.