Business Concept Definitions
|A2 Business Studies: BUSS4 Definitions: |
|Assessing changes in the business environment |
| |
|GDP – the total value of a country’s output over the course of a year |
|[pic]Business cycle – the regular pattern of ups and downs in demand and output within an economy, or of gross domestic product growth over time. It is |
|characterised by four main phases: boom, recession, slump or recovery |
|[pic]Economic growth – an increase in the level of economic activity or real gross domestic product |
|[pic]Interest rate – the cost of borrowing money and the return for lending money. They also measure the opportunity cost to both individuals and firms, of |
|spending money rather than saving it and receiving interest |
|[pic]Exchange rate – the price of one country’s currency in terms of another |
|[pic] |
|Inflation – an increase in the general level of prices within an economy. Inflation also means that there is a fall in the purchasing power of money |
|[pic]
|Assessing changes in the business environment |
| |
|GDP – the total value of a country’s output over the course of a year |
|[pic]Business cycle – the regular pattern of ups and downs in demand and output within an economy, or of gross domestic product growth over time. It is |
|characterised by four main phases: boom, recession, slump or recovery |
|[pic]Economic growth – an increase in the level of economic activity or real gross domestic product |
|[pic]Interest rate – the cost of borrowing money and the return for lending money. They also measure the opportunity cost to both individuals and firms, of |
|spending money rather than saving it and receiving interest |
|[pic]Exchange rate – the price of one country’s currency in terms of another |
|[pic] |
|Inflation – an increase in the general level of prices within an economy. Inflation also means that there is a fall in the purchasing power of money |
|[pic]