BUS 200 Chapter Notes - Chapter 2: Money Supply, Research And Development, Gross Domestic Product

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 200
• Professor: Jeannette Paschen

Document Summary

External environment: e(cid:448)er(cid:455)thi(cid:374)g outside a(cid:374) orga(cid:374)izatio(cid:374)"s (cid:271)ou(cid:374)daries that (cid:373)ight affe(cid:272)t it. Economic environment: conditions of the economic system in which an organization operates. Business cycle pattern of short-term ups and downs (expansions and contractions) in an economy: has 4 recognizable phases, peak, recession: two consecutive quarters when the economy shrinks, trough, recovery. Gross domestic product (gdp) total value of all goods and services produced within a given period by a national economy through domestic factors of production. Gross national product (gnp) total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located. Gdp per capita gross domestic product per person. Real gdp gdp calculated to account for changes in currency values and price changes. Purchasing power parity principle that exchange rates are set so that the prices of similar products in different countries are about the same.