Economics: Theory and Practice, 10th Edition

Glossary

Actual reserves A financial depository institution's reserve account plus its vault cash.

Adaptive expectations Households and businesses base their expectations of the future on past and current experiences.

AFL-CIO An organization for furthering the common interests of labor unions; does not engage in bargaining with management.

Antitrust laws Laws prohibiting certain practices that reduce competition.

Asset Something that an individual or business owns; can be used to cover liabilities.

Assumptions Conditions held to be true within a model.

Automated Clearing House (ACH) network A large electronic payments network that facilitates a reliable, secure, and efficient payments system.

Automatic fiscal policy (automatic stabilization) Changes in government expenditures and/or taxes that occur automatically as the level of economic activity changes; helps to control unemployment or demand-pull inflation.

Average fixed cost Fixed cost per unit produced; total fixed cost divided by the number of units produced.

Average total cost The cost per unit of output produced; total cost divided by the number of units produced.

Average variable cost Variable cost per unit produced; total variable cost divided by the number of units produced.

Balance of trade The figure that results when merchandise imports are subtracted from exports.

Balance of trade surplus (deficit) The value of a countrys' merchandise exports is greater (less) than the value of its imports.

Balanced budget A government's ...