1. Use the article titled "Relative Income, Happiness, and Utility" by Andrew Clark, Paul Frijters, and Michael Shields to answer the following questions.

Link to article: https://www.aeaweb.org/articles?id=10.1257/jel.46.1.95

1. Briefly explain what the Easterlin Paradox is, and why it's a paradox.

2. Briefly explain the difference between Happiness and Utility.

3. Briefly explain how the authors incorporate the Easterlin Paradox into the theoretical model on Utility

4. Suppose your absolute income increases by 20% between the ages 40 to 45. If the Easterlin Paradox is accurate, what would have to be true in order for this to cause your happiness to increase?