ECS2602 Assignment 1 (100% COMPLETE ANSWERS) Semester 1 2025 (587603) - DUE 31 March 2025

Intermediate Macroeconomics - ECS2602 Assessment 1 Semester 1 2025 (Unique Number: 587603) - DUE 31 March 2025 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Assessment 1: Videos and Questions The module ECS2602 consists of three interrelated sections. Section one: This section consists of learning units 1 to 4, and we develop the IS-LM model for a closed economy. Through the IS-LM model, you will understand how the demand for goods determines the level of output and income and the role of fiscal and monetary policies in influencing the demand for goods and, hence, the level of output and income. In the IS-LM model, the focus is on the role of the demand for goods. We assume that firms are willing to supply any quantity at a given price – in other words, we ignore supply constraints. Section two: A closed economy does not participate in international trade, while an open economy has significant trade and financial relationships with other economies. In section two (learning units 5 to 7), we extend the IS-LM model to deal with output and income determination in an open economy and consider the role of fiscal and monetary policy in such a model. In learning unit 5, several key concepts and relationships are introduced. In learning unit 6, with learning unit 2 as background, the focus is on the demand for goods in an open economy. Learning Unit 7 focuses on determining the level of output for an open economy using the IS-LM model. Note the importance of the IS-LM model (learning unit 4) as a building block. Section three: In this section (learning units 8 and 9), the economy's supply side is added, and we return to a closed economy. You will learn how the level of output and income is determined in the medium run. In learning unit 8, you will be introduced to the labour market, and in learning unit 9, we will build on it to derive the relation between inflation and unemployment, known as the Phillips curve. All the parts will be put together to determine the level of output and income, as well as unemployment and inflation, both in the short and medium run. In addition, we will once again consider the role of the combination of fiscal and monetary policy in such a world. The IS-LM model (learning unit 4) is a critical building block of this IS-LM-PC model. Assessment 1 is based on learning units 1, 2 and 3 (60 marks) Given the above explanation, you will understand the importance of Assessment 1 since it is the building block of the whole syllabus. If you do not understand the goods and financial markets, you will find the rest of the learning units challenging to follow. Learning Unit 1 focuses on important macroeconomic aspects such as economic growth and its measurement - gross domestic product (GDP), inflation, stabilisation policies, and unemployment. Learning Unit 2 looks at the goods market, and Learning Unit 3 focuses on the financial market. The videos and recorded online lessons explain essential parts of the prescribed work and help you better understand certain economic concepts and how the different macroeconomic models interrelate. 1 | P a g e How to complete Assignment 1: Print pages 2 to 6 of the assignment, complete the 30 fill-in questions in the spaces provided, scan it and upload the assignment on the ECS2602 module site on myUnisa as a PDF document. No email submissions will be accepted. Learning Unit 1 (18 marks) Watch the following video and answer questions 1 to 5 based on the video. (8 marks) When answering the questions, use the exact words as the presenter. The Difference Between Fiscal and Monetary Policy () Same video: different link: Question 1: According to the video, fiscal policy is the use of __________________________________and __________________________ to influence the economy. (2) Question 2: Fiscal policy is a powerful tool. The key to its power is the _____________________________. (1) Question 3: In the video, there is a reference to supply-side economists, like _____________________________. (1) Question 4: Monetary policy is the way _____________________________ influences the economy through the management of the _____________________________ and ______________________________. (3) Question 5: The central bank system in the United States is called the ________________________________. (1) Work through LU 1 of the study guide and answer questions 6 to 11. (10 marks)