RI 2026 Aims Issues Policies T2W8 Class Test 4

NAME: _____________________________ CLASS: ________________ Raffles Institution Year 6 H2 Economics 2026 T2W8 – Class Test 4 Macroeconomic Aims, Issues and Policies You have 45 minutes to complete the essay. The Covid-19 pandemic led to border lockdowns and global supply chain disruptions, forcing many firms to adjust production and restructure their operations. The outcome was recession as Singapore's GDP contracted by 4.1% and a rise in the unemployment rate to 4.1% in 2020. a) Explain how these developments could lead to an increase in both demand-deficient unemployment and structural unemployment in Singapore. [10] b) Discuss whether the Singapore government should adopt fiscal policy or monetary policy centred on exchange rate when faced with a recession. [15] _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ 25