BUS 201 Chapter Notes - Chapter 2: Gross Domestic Product, Business Cycle, Money Supply
16 Sep 2016
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Document Summary
An organizational boundary separates the organization from its environment. External environment: everything outside an organizations boundaries that might affect it: economic conditions, technology, political/legal considerations, social issues, the global environment, issues of ethical and social responsibility, emerging challenges and opportunities. The economic environment - conditions of the economic system in which an organization operates. How do we know if an economic system is growing: main measure of growth: aggregate output - the total quantity of goods and services produced by an economic system during a given period. Business cycle: the growth (and contraction) pattern of short-term ups and downs in an economy. Periods of expansion and contraction can vary from several months to several. 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.
