"Animal Spirits" is a term popularized by economist John Maynard Keynes to describe the instincts, emotions, and psychological factors that drive human behavior in economic decision-making. It suggests that people's feelings and moods can significantly influence their economic choices, such as spending, investing, and saving, often leading to fluctuations in the economy. These emotional factors can lead to irrational behaviors, such as panic selling during a market downturn or excessive optimism during a boom. Understanding Animal Spirits helps economists and policymakers recognize that economic activity is not solely based on rational calculations but also on the collective emotions of individuals and businesses.