In 2013, the Singapore Government was worried that the economy could slip into recession. It was putting into place a set of supply-side policy measures to lift productivity, prevent a recession and meet its other economic objectives. It was also trying to reduce the international value of the Singapore dollar.
(a)[2]
Define the term ‘recession’.
(b)[4]
Explain two reasons why a country may have a high foreign exchange rate.
(c)[6]
Analyse how supply-side policy measures may raise productivity.
(d)[8]
Discuss whether a decline in the international value of its currency will always benefit an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “a decline in a country’s output/GDP (1) across a period of six months/two successive quarters (1)” …