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.

Differentiate between stakeholders and shareholders and their roles in corporate governance.

Acknowledge organizational barriers to ethical behavior and whistleblowing.

Understand the difference between direct and indirect real estate investments.

Identify the various types of real estate investment trusts (REITs) and their characteristics.

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Definitions:

Hour

A unit of time equal to 60 minutes.

Opportunity Cost

Skipping over the possibility of gain from multiple options by deciding on a single one.

Opportunity Cost

The cost of choosing one option over alternative uses of resources or opportunities.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of currency.