6.In the two-sector model with a fixed exchange rate, suppose there is an exogenous 10% increase in the marginal product of labour in the non-traded sector (hold the other exogenous variables fixed). Explain. Use numbers and, where appropriate, explain equations in words.

(a) How does this exogenous change affect the wage, price, and marginal product in the traded sector?

(b) How does this exogenous change affect the price and wage in the non-traded sector?

(c) How does this exogenous change affect the price level?