Concept
How do economic influences affect businesses and individuals?
IntroductionToBusiness OP 8D04gAa / 1.2. Understanding the Business Environment*
"This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways. When the economy is growing, for example, unemployment rates are low, and income levels rise. Inflation and interest rates are other areas that change according to economic activity. Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market."
Related Ideas
- How do macroeconomic and microeconomic forces shape economic activity, employment, prices, and markets?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- How does microeconomics explain the choices of households, businesses, and governments?IntroductionToBusiness OP 8D04gAa · 1.6. Microeconomics: Zeroing in on Businesses and Consumers*
- How does monetary policy influence economic activity and inflation?IntroductionToBusiness OP 8D04gAa · 1.5. Achieving Macroeconomic Goals*
- How does fiscal policy stimulate or restrain the economy?IntroductionToBusiness OP 8D04gAa · 1.5. Achieving Macroeconomic Goals*
- How does inflation affect price stability and purchasing power?IntroductionToBusiness OP 8D04gAa · 1.4. Macroeconomics: The Big Picture*
- How does economic growth and the business cycle indicate a nation’s economic health?IntroductionToBusiness OP 8D04gAa · 1.4. Macroeconomics: The Big Picture*
- What sectors make up the business environment, and how do they influence business decisions?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- What are the foundational concepts of economics, business, and economic policy?IntroductionToBusiness OP 8D04gAa · Glossary