MGTA01H3 Chapter Notes - Chapter 2: Purchasing Power Parity, Genuine Progress Indicator, Economic Stability

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Bill Mc Conkey

Document Summary

Chapter 2 understanding the environments of business. Economic growth: agricultural production has grown because we have been able to increase total output in the agricultural sector. The business cycle: experts call the pattern of short-term ups and downs (expansions and contractions) in an economy the business cycle. It has four recognizable phases: peak, recession, trough, recovery, a recession is a period during which aggregate output, a measured by real gdp, declines, if a recession lasts for a prolonged period, it is called a depression. Periods of expansion and contraction can vary from several months to several years. Aggregate output and the standard living: the main measure of growth in the business cycle is aggregate output, the total quantity of goods and services produced by an economic system during a given period. If the growth rate of gdp exceeds the rate of population growth, then our standard of living should be improving.