-Refer to the Above Graph to Answer This Question

question 74

Multiple Choice

-Refer to the above graph to answer this question.What will happen in the long run if the price level is currently P1?

• A)The price level will decrease but the nominal wage will increase.
• B)The price level will increase but the nominal wage will decrease.
• C)Both the price level and the nominal wage will decrease.
• D)Both the price level and the nominal wage will increase.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces that activate behavior.

Incentive Theories

Theories in psychology focused on understanding how external rewards motivate behaviors and drive human actions.

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.