MGTA02H3 Chapter Notes - Chapter 2: Genuine Progress Indicator, Purchasing Power Parity, Gross National Product
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MGTA02H3 Full Course Notes
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Importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system. Everything outside an organization"s boundaries that might affect it. *managers must therefore have an accurate understanding of the environment. Conditions of the economic system in which an organization operates. * i. e. mcdonald"s operates in an economic environment where there are, moderate. Moderate employment: most people can afford eat out, but it also means that it must pay higher wages to attract employees. Low inflation: it pays relatively constant prices for its supplies, but it also means that it can"t really increase the prices it charges consumers. It is said to be grown when it is able to increase total output. Pattern of short-term ups and downs (expansions and contractions) in an economy. Period during which aggregate output (measured by real gdp) declines. If recession lasts for a prolonged period, it is called depression.
