Glossary
Adjustment coefficient T he constant of proportionality in the simple macroeconomic model in which the rate of change of national income is assumed to be proportional to excess expenditure.
Algebraic f raction Ratio of two expressions: p(x)/q(x) where p(x) and q(x) are algebraic expressions such as ax2+bx+c or dx+e.
Annual percentage rate (APR)This is the equivalent annual interest paid for a loan, taking into account the compounding over a variety of time periods.
Annual rate of inflation T he percentage increase in the level of prices over a 12-month period.
Annuity A lump-sum investment designed to produce a sequence of equal regular payments over time.
Anti-derivative A function whose derivative is a given function.
Arbitrary constant A letter representing an unspecified constant in the general solution of a differential equation.
Arc elasticity Elasticity measured between two points on a curve.
Arithmetic progression A sequence of numbers with a constant difference between consec-utive terms; the n th term takes the form a+bn.
Autonomous consumption and savings The levels of consumption and savings when there is no income.
Autonomous consumption multiplier T he number by which you multiply the change in autonomous consumption to deduce the corresponding change in, say, national income. Average cost Total cost per unit of output: AC =TC/Q.
Average product of labour Output per worker: AP L=Q/L.
Average revenue Total revenue divided by quantity: TR/Q=PQ/Q=P.
Balanced budget multiplier The number by which you multiply the change in government expenditure to deduce the corresponding change in, say, national income, assuming that this change is financed entirely by a change in taxation.。