Behavioral economists have discovered that people view a 2% decrease in their income without inflation as unfair,
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Behavioral economists have discovered that people view a 2% decrease in their income without inflation as unfair, but a 3% increase in their income in the presence of 5% inflation as fair. What are the nominal and real rates of change in their incomes? What tendency is leading people to feel like the pay decrease is unfair?
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Related Book For
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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