BUSN 110 Chapter Notes - Chapter 2: Economic Freedom, Oligopoly, Deflation
Document Summary
Chapter 2: economics the framework for business. Understanding economics: key definitions: economy: financial and social system of how resources flow through society, economics: study of choices made to allocate society"s resources. Macroeconomics: study of a country"s overall economic dynamics. Global economic crisis: began when the dotcom bubble burst in 2000, followed by the 9/11 terrorist attacks in 2001. Economy was on the brink of recession: subprime mortgage loans - granted to borrowers with low credit scores. Economic relief: troubled assets relief program (tarp) Introduced as an economic bailout plan: government passed the american recovery and reinvestment act to help the nation recover from a financial disaster. Included cutting taxes, building infrastructure, and investing in green energy. Fiscal policy: government efforts to influence the economy through taxation and spending. Debt ceiling - maximum amount congress lets the government borrow. Fiscal cliff - decrease in government spending and increase in tax rates.
