MGTA01H3 Chapter Notes - Chapter 2: Business Cycle, Encarta, Deflation
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MGTA01H3 Full Course Notes
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Document Summary
This external environment which consists of everything outside an organizations boundaries that might affect it plays a major role in determining the success or failure of any organization. The economic environment refers to the conditions of the economic system in which an organization operates. The three key goals of the canadian economic system: economic growth, economic stability, and full employment. Tools we use to measure economic growth, including aggregate output, standard of living, gross domestic product, and productivity. Main threats to economic stability namely, inflation and unemployment. Experts call the pattern of short-term ups and downs in an economy the business cycle: it has four recognizable phases: peak, recession, trough, and recovery. A recession is a period during which aggregate output declines. If a recession lasts for a prolonged period, it is called a depression. Aggregate output: the total quantity of goods and services produced by an economic system during a given period.
