DSE 20-09

Ocean Park and Hong Kong Disneyland are the two large theme parks in Hong Kong.

The first hotel in Ocean Park was launched in 2018 while the second hotel and the water park were scheduled to be opened before 2021. It is expected that such infrastructure development can attract more tourists to stay longer in Hong Kong.

(b) Other things being equal, what will be the effects of the infrastructure development on Hong Kong’s aggregate demand and long run aggregate supply in the future? How about on aggregate output? Explain your answers with the aid of a diagram. (8 marks)