Suppose a large country experiences economic growth which results in a reduced willingness to trade. The country's terms of trade will ________ because the fall in demand for imports will cause the price of its exports to ________ relative to the price that it has to pay for its imports.

In absolute value, the tax multiplier is greater than the government purchases multiplier

Indicate whether the statement is true or false

The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by

A) changing the population. B) affecting the value of the stock market. C) increasing business confidence. D) affecting workers' wealth.