Description

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Behavioral economics is the combination of psychology and economics that investigates what happens in markets in which some of the agents display human limitations. However, surely all of economics is meant to be about the behavior of economic agents, be their firms or consumers, suppliers or demanders, bankers. Economics traditionally conceptualizes a world populated by calculating, unemotional maximizers. Hence, their minds bring this question: Can human behavior influence social economic growth or recession? I shall attempt to apply human psychology and economic theory to explain this question to let readers can understand.