Textbook Notes (368,795)
Canada (162,165)
RSM100Y1 (431)
Chapter 2

chapter2

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Department
Rotman Commerce
Course
RSM100Y1
Professor
Michael Szlachta
Semester
Fall

Description
RSM Chapter 2 notesInflation and deflation External environment everything outside an organizations boundaries that might affect it This environment plays a major role in determining the success or failure of any organizationOrganizational boundaries that which separates the organization from its environmentEconomic environment conditions of the economic system in which an organization operatesThree goals in the Canadian economic system economic growth stability and full employment Tools we use to measure economic growth aggregate output standard of living gross domestic product and productivityMain threats to stability inflation and unemployment 25 of population works in agriculture in Canada agriculture production has grown because we have been able to increase total output in the agricultural sectorBusiness cycle pattern of short term ups and downs expansions and contractions in an economy this cycle is used to examine whether or not an economic system is growing The cycle has four recognizable phases peak recession trough and recoveryRecession period during which aggregate output as measured by real GDP declines Recession is usually defined as two consecutive quarters when the economy shrinks but it is probably more helpful to say that a recession starts just after the peak of the business cycle is reached and ends when the trough is reachedDepression particularly severe and longlasting recession occurs when the trough of the business cycle extends two ore more yearsDuring in depression economic activity declines unemployment is very high and consumer buying declinesAggregate output total quantity of goods and services produced by an economic system during a given period This is used to measure of growth in the business cycle An increase in aggregate output is growthStandard of living total quantity and quality of goods and services that a countrys citizens can purchase with the currency used in their economic systemwwwnotesolutioncom
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