MGTA01H3 Chapter Notes -Monetary Policy, Money Supply, Mphasis
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MGTA01H3 Full Course Notes
Verified Note
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Document Summary
External environment: everything outside an organization"s boundaries that might affect it: therefore, managers have to be proactive and react to the environment changes. Economic environment: conditions of the economic system in which an organization operates. The business cycle: pattern of short-term ups and downs in an economy which show growth: recession: period where aggregate output declines, depression: long-lasting recession. Aggregate output and standard of living: aggregate output: total quantity of goods/services produced by an economic system, when aggregate output increases, output per capita increases, which increases the standards of living. Productivity: measure of economic growth that compares how much the system produces with the resources needed to produce it. Stability: when the amount of money available in an economic system and the quantity of goods/services produced in it are growing at about the same rate (there are factors that threaten stability-)
