1. The holding of the World Cup in the US will attract tourists from all over the world as well as construction of

transportation facilities. With the aid of an ADAS diagram, explain under what condition the price level would increase in the short run. (7 marks)

2. The government has increased its expenditure in organizing a worker retraining programme for the

unemployed. With the aid of an ADAS diagram, Explain how the above affect the price level and output level in the long run.