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Literature affects people by teaching them, entertaining them and inspiring them to take action in life. Literature also helps people understand other walks of life. Narratives, in particular, inspire empathy and give people a new perspective on their lives and the lives of others.
literary fiction is a style, (some say a genre), and the column gets into that. a slice of life is a bit of fiction (or it can be non-fiction) that takes parts of a day or life and shows it to you, which can be in any genre, but are typically not a full story, just a slice.