Questions to consider - Questions to consider 1 Describe...

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Questions to consider: 1). Describe animal spirits and their impact on the macroeconomy: Animal spirits is a term coined by John Maynard Keynes that accounts for the irrational and unpredictable nature of humans. In other words, animal spirits are waves of pessimism or optimism relating to the future of an economy. Keynes thought that animal spirits in part determined aggregate economic activity. Essentially, this concept states that expectations for the future will influence people’s actions in the present causing their expectations for the future to come about. If an individual is pessimistic about the future of the economy, he/she will spend and invest less today which will weaken the economy and cause his pessimistic view to become reality. 2). Critically assess GDP (or GDP/capita) as a measure of: (i) output, (ii) social welfare. Provide at least three arguments. GDP is measured as the value of all final goods and services that are being currently produced.
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Christopher Reinemann
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