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.
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Answer:
a. are more actively listening to customers and helping to solve their problems.
Explanation:
The purpose of public relations is to educate and eventually convince the public, potential clients, investors, etc, to maintain a positive impact or favorable opinion of the company.
Therefore, Public relations is the most effective way to interact with customers, listening to them, and solve their queries so that company can gain their trust by fulfilling their needs within the prescribed time.
Answer:
Pure discount
Explanation:
Cindy is taking a pure discount type of loan. A pure discount loan is the promise to pay a certain sum of money in the future in exchange for borrowing money today. Cindy gets money today and repays a single lump sum at a future date. A pure discount loan is where the principal is paid back at a future date without any periodic interest payments
Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue for barley producers will increase because the price effect is greater than the quantity effect.
Explanation:
Every company must sooner or later come to the point that an rise in the price is right.
Inflation has two primary causes: demand tug and expense drive.
Both have a general raise in costs in an economy. However, they work otherwise. Conditions of market pull arise as customer demand raises costs.
Consumers are now increasing the demand on the good for some quantity, and suppliers would need to offer a better price in order to deliver the good.
Answer:
<h3>Always make sure to write all the ideas down.
</h3><h3>Make no judgement.</h3><h3>Briefly discuss and elaborate on each idea as they are presented.
</h3><h3>Let people know they will be brainstorming in advance if possible
.</h3>
Explanation:
- One of the most basic rule of brainstorming includes the practice of inclusiveness. It is important to bring all ideas together and write it down as in a brainstorming session, quantity matters over quality.
- Each and every idea should be <u>respected by all</u>. One should not make any judgement of another person's idea.
- It is important to briefly discuss each idea as they are presented as to fully <u>comprehend the main motive behind each idea</u>. Some ideas become more refined as we discuss more upon it.
- It is also important to let the members know that there will be a brainstorming session in advance so that <u>each member can think of an idea before the actual session</u> takes place.