Keynes Thought That the Behaviour of the Economy in the Short

question 243

Essay

Keynes thought that the behaviour of the economy in the short run was influenced by what he called "animal spirits." By this he meant that businesspeople sometimes felt good about the economy, and carried out lots of investment, and at other times felt bad about the economy, and so cut back on their investment spending. Explain how such fluctuations in investment would lead to fluctuations in GDP and prices.

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Definitions:

Cognitive-behavioral Therapy

A psychotherapeutic approach that addresses dysfunctional emotions and behaviors through goal-oriented, systematic procedures.

Borderline Personality Disorder

A behavioral health problem typified by volatile feelings, actions, and links with others.

Suicide

The act of intentionally causing one's own death, often resulting from despair or mental health disorders such as depression.

Drugs

Substances used for medicinal purposes or to change perception, mood, or consciousness; may be legal, illegal, prescription, or over-the-counter.