The multiplier is equal to:

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce. This means

A. The marginal factor cost curve is below the average cost of labor curve. B. The firm has market power. C. The labor market is perfectly competitive. D. It will produce more than it would in a competitive labor market.

In the basic Keynesian model all of the following are true EXCEPT:

A. planned net exports always equal actual net exports. B. planned investment always equals actual investment. C. planned consumption always equals actual consumption. D. planned government spending always equals actual government spending.