MGTA01H3 Chapter Notes - Chapter 2: Business Cycle, Economic System, Purchasing Power Parity
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MGTA01H3 Full Course Notes
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Document Summary
External environment: everything outside an organizations boundaries that might affect it. Managers should have accurate understands of environment and try to in uence it operates. Economic environment: conditions of the economic system in which an organization. Three key goals of the canadian economic system: economic growth, economic. Economic growth is measured by : aggregate output, standard of living, growth. Business cycle: patters of short-term ups and downs ( expansions and contractions) in domestic product, and productivity. stability, and full employment. an economy. Four recognizable phases: peak, recession, trough, and recovery. A recession is a period during which aggregate output declines. Prolonged period of recession leads to depression (measured by real gdp, declines) In later half of 1990s, canadian economy continuously expanded, leading people to believe that business cycle was a think of past. They learned their lesson hard when stocks crashed in 2000.
