RI 2026 Macroeconomic Aims and Issues T2W5 Class Test 3

NAME: _____________________________ CLASS: ________________ Raffles Institution Year 6 H2 Economics 2026 T2W5 – Class Test 3 Macroeconomic Aims and Issues You have 45 minutes to complete the essay. Singapore had experienced annual deflation in a number of years; 2020: -0.5%, 2015: -0.5%, 2002: -0.4%, and 1998: -0.3%. With the exception of 2015, deflation in 2020, 2002, and 1998 were during economic recession period. (a) Explain one possible demand-side cause and one possible supply-side cause of deflation in Singapore. [10] (b) Discuss whether deflation or inflation is more damaging for Singapore’s economy. [15] _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ 25