BU111 Lecture Notes - Lecture 4: Business Cycle, Deflation, Economic Stability
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Influences costs, potential sales, and financial uncertainty: economic growth- aggregate output, gdp, and standard of living. More money with economic growth, thus more opportunity to sell things to the populations. They are sufficiently wealthy to buy things and with more money they want to spend more. Aggregate output total output of goods that a country produces in a given period higher output = growth = higher standard of living, more exports. Gdp is the value of the goods and services that the country produces through fop: trade balance comparison of imports vs. exports. If imports > exports, you have a trade deficit. If exports > imports, you have a trade surplus. Wants to balance trade deficit = trade surplus: national debt government borrowing. Government borrows from the same places as businesses from us, banks, and foreign countries but there is only so much money to go around.
