2. Having led in mobile adoption since the 1990s, South Korea is taking preemptive action to develop a 5G network. The government of South Korea is spending $1.5 billion on upgrading the network, which is expected to be fully rolled out in 2020.54

a. With the spending of $1.5 billion, how do you expect the aggregate demand to change in South Korea?

b. If the 5G network can be successfully rolled out in 2020, will there be any changes in South Korea’s short-run aggregate supply (SAS) and long-run aggregate supply (LAS)?