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I'm struggling with part c of this question, please help Questinnlimanksl Consider an open economy with exible exchange rates. Let 15 stand for the product

I'm struggling with part c of this question, please help

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Questinnlimanksl Consider an open economy with exible exchange rates. Let 15 stand for the product market equilibrium condition, LM for the financial market equilibrium condition, and IP for the interest parity condition. a. Write down the equations for the IS, LM and IP curves (1.5 points] b. Explain what the 3 curves in the IS-LMIP diagram represent and why they each have their particular slope. (1.5 points) c. During COVID, major economies around the world had implemented lock-down policies and consequently, demanded fewer imports. In an lSLM-IP diagram, show the effect of COVID-19 on Australian output, the interest rate and the exchange rate. [9 points) [N ote that the impact on Australia from the pandemic was relatively mild, so you can assume, rather unrealistically, that output in the Australian economy was not directly impacted by COVID-19. Therefore, in your answer, use the model to analyse any other indirect effects on output in the economy, along with the interest rate and the exchange rate). d. Which components of aggregate demand change? Explain in words. (3 points)

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