ECS2602 Assignment 3 (COMPLETE ANSWERS) Semester 2 2026 - DUE 14 September 2026

ECS2602 Assignment 3 (COMPLETE ANSWERS) Semester 2 2026 - DUE 14 September 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us...... The IS-LM model in an open economy Study the diagram below and answer questions 1 to 4: Question 1: (3 marks) What will happen to investment spending (I)? Give two reasons for this change. Question 2: (2 marks) What happens with the nominal exchange rate? Give the reason for this change. Question 3: (2 marks) What happens to exports? Give the reason for this change. Question 4: (2 marks) Why are imports indeterminate? Give two reasons. 1 Learning Unit 8: The labour market Question 5: (3 marks) Draw a labour market diagram to indicate what will happen to the implied real wage and the natural unemployment if firms decrease the markup. Clearly indicate the shifts and/or movements along the curves on the diagram. Question 6: (1 mark) What will ensure that the bargained real wage is equal to the implied real wage given the above diagram? Learning unit 9: The IS-LM-PC model Watch the following video and answer the questions based on the video on the answer sheet provided.