Top Posters
Since Sunday
26
14
o
10
j
7
s
7
R
7
e
6
6
b
6
f
6
s
6
j
5
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
CLopez678 CLopez678
wrote...
Go to Answer
Posts: 60
Rep: 0 0
2 months ago
How do animal spirits affect GDP?
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
Read 23 times
1 Reply
Replies
Answer verified by a subject expert
chevy87chevy87
wrote...
#1
Posts: 66
Rep: 0 0
2 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Keynes believed in a phenomenon that he dubbed "animal spirits," which represent psychological factors that lead to changes in the mood of consumers and businesses, thereby affecting consumption, investment, and GDP. In Keynes's view, the animal spirits in an economy could fluctuate sharply even as the underlying fundamental features of the economy changed relatively little. For example, a period of heightened optimism could give way to a period of deep pessimism, even though the economic fundamentals—technology, physical capital, and human capital—had not changed much.
1

Related Topics

CLopez678 Author
wrote...

2 months ago
Smart ... Thanks!
gefa
wrote...

Yesterday
You make an excellent tutor!
derya1234
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  209 People Browsing
 246 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 840
  
 976
  
 1745
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 301
Previous poll results: Should Ph.D.'s be addressed as doctors?