MGTA01H3 Chapter 2: Chapter 2 notes
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MGTA01H3 Full Course Notes
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Chapter 2 notes understanding the environments of business. Aka total 593 values of products/services produced by a national economy within a given period no matter where the factors of production are located: gdp per capita: total gdp divided by the total population. Gdp per capita is highest for country"s with low populations and a high productivity rate: real gdp: gdp that is adjusted to account for inflation, or changes in the value of a country"s currency. Inflation: occurs when widespread price increases happen throughout an economic system. Standard of living decreases as a result because inflation decreases the power of your money, economy falls apart: cpi: consumer price index, measures the prices of typical products bought by people in urban areas. This can determine the price increases by inflation, and determine how the basket of products change as the prices change, and the society changes (or modernizes: deflation: opposite of inflation.
