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1.The country of Sealand is experiencing economic growth because of

supply factors. Which of the following could be true? 

-A. In Sealand, there is a continuous rightward shift in the short-run aggregate supply
- B. All of the other answers are incorrect
- C. In Sealand, there is a continuous leftward shift in the short-run aggregate supply
-D. In Sealand, there is a marked rightward increase in the aggregate supply in one period only
-E. In Sealand, there is no shift in aggregate supply, but aggregate demand is increasing over time2.Charles wishes to know about the multiplier effect and changes in spending by the government. Which of the following is correct?
A. When government spending changes, the multiplier effect will be the same as a change in taxes.

- B. All of the other answers are incorrect
-C. When government spending changes, the multiplier effect will be larger than that associated with a change in the spending on investment.
-D. When government spending changes, the multiplier effect will be dissimilar to the changes in spending on investment or consumption.
-E. When government spending changes, the multiplier effect will be less than a similar change in consumption.

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Subject: Business, Economics

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