In the model with Keynesian sticky wages anThe government spending multiplier is A) the ratio of the increase in consumption to the increase in government spending. B) the ratio of the increase in consumption to the increase in output. C) the ratio of the increase in government spending to the increase in output. D) the ratio of the decrease in government spending to the increase in consumption. E) the ratio of the increase in output to the increase in government spending.d prices A) The first welfare theorem holds. B) The marginal product of labour may not be equal to the marginal rate of substitution of leisure for consumption. C) The representative consumer is choosing labour supply optimally given the market real wage. D) The representative firm is not optimizing. E) Supply equals demand in every market