BUS-A 200 Chapter Notes - Chapter 4: Monetary Policy, Credit Theory Of Money, Fiscal Policy
Document Summary
External environment - everything outside an organization"s boundaries that might affect it. Organizational boundary - that which separates the organization from its environment. Distributors of products are normally considered part of the environment rather than the organization, except when they are in the business environment. Economic environemtn - conditions of the economic system in which an organization operates. Aggregate output - g&s produced by a country in a given period. Standard of living - total quantity and quality of goods and services that a country"s citezens can purchase with the currency used in their economic system. Business cycle - short ups and downs/expansions and contractions. Real gdp - adjusted measure of output growth using prices in the base year. Ppp - principle that exchange rates are set so that the prices of similar products in different countries are about the same.
