MGTA01H3 Chapter Notes - Chapter 2: Genuine Progress Indicator, Business Cycle, Money Supply
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MGTA01H3 Full Course Notes
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Document Summary
External environment: everything outside organization boundaries that might affect it. Measures of economic performance: gdp, gdp growth, gdp/capita, productivity, unemployment, Purpose of economic system is to assemble/organize resources, make things people want to earn profit. 3 key goals of canadian economic system: economic growth. Business cycle: pattern of short term ups (expansions) and downs (contractions) in economy. Recession: period during aggregate output (measured by real gdp) declines. Aggregate output (main measure of growth): total quantities of goods & services produced by economic system during a period. When aggregate output increases, output/capita (quantities of goods & services/# of people) goes up and system provides more goods that are wanted. When these 2 characteristics occur, standard of living increases. Standard of living: total quantities of goods that people can buy with currency. Gross domestic product: total value of goods produced domestically through fop in given period (biggest: us, cdn, japan, germany)
