MGTA02H3 Chapter Notes - Chapter 2: Structural Unemployment, Stabilization Policy, Gross National Product
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MGTA02H3 Full Course Notes
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Chapter 2 understanding the environment of business. External environment: everything outside an organization"s boundaries that might affect it. Economic environment: conditions of the economic system in which an organization operates. Most ppl can afford to each out. Pays constant price for supplies, but can"t increase price to charge customers. Aggregate output, standard of living, gdp, productivity. Business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy. Main measure of growth in business cycle is aggregate output. Aggregate output: total quantity of goods and services produced by economic system during a given period. Output/capita (quantity of goods and services per person) goes up. System provides more of goods and services ppl want. Standard of living: total quantity and quality of goods and services that a country"s citizens can purchase with the currency used in their economic system.
