MGTA01H3 Chapter Notes - Chapter 2: Business Cycle, Purchasing Power Parity, Money Supply
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MGTA01H3 Full Course Notes
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External environment everything outside an organization"s boundaries that might affect it. Economic environment economic conditions of the economic system in which an organization operates include factors like growth, unemployment, and inflation. Make things people want, so people will buy them. Creating profits for business so everyone will be better off. The business cycle four phases: peak, recession, trough and recovery. Pattern of short-term ups and downs in an economy. Recession: a period during which aggregate output declines. Aggregate output: total quantity of g/s produced by an economic system during a given period. Standard of living: total quantity and quality of g/s that a country"s citizens can purchase. $ value of all g/s produced in a country in one year. The larger the gdp: more workers, using more resources, are producing more things of values. Growing gdp: more people making more stuff. Falling gdp: fewer people making less stuff, aka (cid:862)re(cid:272)ession(cid:863, exporter might benefit long term gdp growth.
