For economists only...can u please help?
Answer:
All economists consider that expectations are important. Consumption depend on how much we consumed in the past. If, for different reasons, you stop earning money, consumption keeps at the same rate for some time. That means that the sense of wellbeing and happiness affects economic behaviour in the future. Saying it with other words, our decisions when a cycle of boom turns into a bust, are not automatic but slow. That´s make data more difficult to study.
Of course. When the economy is doing well, people are buying and selling things and making money. On the downside, people are feeling poor - because they are.
During booms, people are happy prosperous and spend a lot of money. During busts, many people are poor and stingy and fear life a lot more. Contrast the Roaring 20's and the Great Depression. In the former time, people spent spent and enjoyed themselves; while in the latter time, they saved worked hard and often still didn't get by
yes, a bust or recession means some people have lost their job and clearly affects their wellbeing
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