Because of the wealth effect, a rising aggregate price level "reduces" the purchasing power of wealth and therefore "reduces" the aggregate quantity of output demanded.
<h3>What is wealth effect?</h3>
According to the wealth effect, a behavioural economic hypothesis, customers will spend more money even if their income stays the same.
The effect of wealth effect on aggregate demand is-
- People will increase their consumption as their wealth rises. Thus, at lower price levels compared to higher price levels, the consumption component of aggregate demand will be stronger.
- A person's desire for inexpensive fast food is likely to decline as their income rises, but their desire for more costly steak may increase.
To know more about the aggregate demand and aggregate supply, here
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Answer:The idea of the Ad - do not text while driving
Explanation:
Texting and driving is dangerous – that is a fact. Americans are highly aware of and concerned about the issue. More than nine in ten Americans believe sending (94%) and reading (91%) texts while driving is dangerous or very dangerous. There have been many efforts to educate and convey the potential consequences of texting and driving using scare tactics or preachy messaging. And, while research shows that people are convinced that the behavior is dangerous, they are still doing it. In order to address the disconnect between awareness and behavior, the Texting and Driving Prevention campaign aims to go beyond showing people the potential crashes and gruesome end results.Texting while driving, also called texting and driving, is the act of composing, sending, reading text messages, email, or making similar use of the web on a mobile phone while operating a motor vehicle. Texting while driving is considered extremely dangerous by many people, including authorities, and in some places have either been outlawed or restricted. As a form of distracted driving, texting while driving significantly increases the chances that a driver will be involved in a motor vehicle accident.
Answer:
Confirmation bias
Explanation:
The reason is that the business managers who always see the one side of the story are biased because they don't see what the person whom they rejected was doing with its life and capabilities that he developed that might be the best resouce for the company. This consecutive result which forms a perception that the person is right is often called confirmation biasness.
