Economics, 3rd Edition

automatic stabilizers 

changes in fiscal policy that stimulate 

aggregate demand when the economy goes into a recession, 

without policymakers having to take any deliberate action

autonomous spending or autonomous expenditure 

 

spending which is not dependent on income/output

average fixed cost 

fixed costs divided by the quantity of output

average revenue 

total revenue divided by the quantity sold

average tax rate 

total taxes paid divided by total income

average total cost 

total cost divided by the quantity of output

average variable cost 

variable costs divided by the quantity 

of output

balanced budget 

where the total sum of money received by a 

government in tax revenue and interest is equal to the amount 

it spends, including on any debt interest owing

balanced trade 

a situation in which exports equal imports