Using longitudinal data from over 100 countries, Diener and his colleagues showed that rich countries are in general happier than poor countries (Diener, Tay, & Oishi, 2013).[17] Also, life satisfaction for most countries goes up as they become wealthier over time. Diener identified three factors that influence the relationship between income and SWB. Namely, rising income most likely results in higher SWB when it leads to greater optimism, financial satisfaction and household material prosperity among citizens. Furthermore, Diener and his colleagues investigated the relationship between income and different elements of SWB. They illustrated that income has stronger influence on people’s evaluation of their lives than the positive or negative emotions they experience over time (Diener, Kahneman, Tov, & Arora, 2010).[18] The study points to the necessity to evaluate different elements of SWB separately instead of treating happiness as a single entity.
Two neighboring countries implemented different sets of economic reforms. The reforms took over a decade to implement, but the effects were not similar at all. Redvania was more prosperous and it became much richer, while Blueland stagflated and the inhabitants were not pleased with the outcome.

Which country experienced less stagflation after 10 years?