What is the difference between endogenous and exogenous factors?
An exogenous variable is a variable that is not affected by other variables in the system. ... Exogenous comes from the Greek Exo, meaning “outside” and gignomai, meaning “to produce.” In contrast, an endogenous variable is one that is influenced by other factors in the system.
How do endogenous and exogenous factors affect the business cycle?
Exogenous causes are factors that influence the business cycle from outside of the system, e.g. climate (drought and other natural disasters) and the political situation of a country. Endogenous causes are factors that influence the business cycle from inside the system, e.g. total expenditure.
