What Did Keynes Mean by the Phrase "Animal Spirits of Entrepreneurs

question 34

Essay

What did Keynes mean by the phrase "animal spirits of entrepreneurs"? Why do these "spirits" make investment a volatile component of GDP?

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Definitions:

Compete On Quality

a business strategy where companies focus on offering higher quality products or services instead of competing on prices.

Product Differentiation

The strategy of distinguishing a product from others in the market by emphasizing its unique features, benefits, and attributes.

Size Distribution

Refers to the variation in size among entities in a population, such as companies within an industry or incomes among individuals.

Market Power

The ability of a company or entity to influence the price or terms of products in the market to its advantage, often because of its size or market share.