MGTA01H3 Chapter Notes - Chapter 2: Genuine Progress Indicator, Business Cycle, Unemployment
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MGTA01H3 Full Course Notes
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The external environment of a business consists of everything outside an organization"s boundaries that might affect it, it plays a major role in determining the success or failure of an organization. The economic environment refers to the conditions of the economic system in which an organization operates. The three goals of canada"s economic system are economic growth, economic stability and full employment, the main threats to economic stability are inflation and unemployment. The business cycle is the pattern of short-term ups and downs (expansions and contractions) in an economy, has four recognizable phases: peak, recession, trough and recovery. Recession is the period during which aggregate output, as measured by real gdp, declines. Depression is a severe recession that has lasted for a prolonged period. Aggregate output: total quantity of goods and services produced by an economy during a given period.
