In the Complete Model, the Price Level Is Predetermined Because

question 49

Multiple Choice

In the complete model, the price level is predetermined because

• A) consumers usually cannot negotiate prices with retail outlets.
• B) in a competitive market environment firms must take prices as given.
• C) no one consumer is large enough to influence price.
• D) it depends on previous firm and consumer behavior.
• E) none of the above.

---

Definitions:

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or paying taxes, and is instead saved for future use.

National Saving

The total saving of an economy, consisting of both private saving (by households and businesses) and public saving (government surplus).

Private Saving

The portion of households' income that is not used for consumption or paying taxes, but instead is saved.

National Saving

The total amount of savings generated within a country, calculated as the sum of private savings (by individuals and businesses) and public savings (government surplus), which is critical for funding investment.