Understanding the Environment of Business - Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system

7 important questions on Understanding the Environment of Business - Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system

Conditions of the economic system in which an organization operates

Economic environment

What are the three goals in the Canadian economic system?

1) Economic growth
2) economic stability
3) full employment

Pattern of short-term ups and downs in an economy

business cycle
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What does the CPI measure?

changes in the cost of a basket of goods and services that a typical family might buy.

The canadian stabilisation policy is made up of?

fiscal and monetary policies

What is the goal of the stabilisation policy?

smooth out fluctuations in output and unemployment and to stabilise prices

Policies by means of which the government controls the size of the nations money supply?

monetary policies

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