During 2013, the Singapore Government was worried that the economy could slip into recession. It was putting in place a set of supply-side policy measures to raise productivity, prevent a recession and meet its other economic objectives. It was also trying to lower the international value of the Singapore dollar.
(a)[2]
Define the term ‘recession’.
(b)[4]
Explain two reasons why an economy might have a high foreign exchange rate.
(c)[6]
Analyse how supply-side policy measures could raise productivity.
(d)[8]
Discuss whether a decrease in the international value of its currency will always help an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “drop in GDP/output” …