Question: Why can loss aversion help explain why a cut in wages is worse than a rise in wages is good? How is this related to

Why can loss aversion help explain why a cut in wages is worse than a rise in wages is good? How is this related to wage stickiness and habit formation?

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Why can loss aversion help explain why a cut in wages is worse than a rise in wages is good? How is this related to wage stickiness and habit formation?

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