1. Starting fromlong-run equilibrium, draw an aggregate demand-aggregate supply graph to illustrate the difference between a long-run and a short-run equilibrium due to an increase in aggregate demand. Once the economy is in the short-run equilibrium, explainbut it's not necessary to illustratehow long-run equilibrium will be restored.

2. Juan has been doing some research on countries in Europe and Africa. Juan has observed that European countries are wealthier and that they have a higher percentage of workers who are college educated. Therefore, Juan concludes that sending more Africans to college will increase economic growth and wealth in Africa. Discuss the validity of this conclusion.