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SingaporeEconomics

Inflation, Unemployment and Economic Growth

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What is the difference between using spare capacity and expanding capacity, and why does it matter?

Distinguish actual from potential growth, explain the business cycle, and evaluate the benefits and costs of growth
A focused answer to the H2 Economics learning outcome on economic growth. The difference between actual and potential growth, the phases of the business cycle, the sources of each kind of growth, and the benefits and costs of growth.
9 min answer →

What makes the general price level rise, and why does inflation matter?

Distinguish demand-pull from cost-push inflation, explain how inflation is measured, and evaluate its consequences
A focused answer to the H2 Economics learning outcome on inflation. Demand-pull and cost-push causes using AD-AS, how the CPI measures inflation, and the consequences for purchasing power, competitiveness and the economy.
10 min answer →

How do we record a country's transactions with the rest of the world, and what does a deficit mean?

Explain the structure of the balance of payments and evaluate the causes and consequences of a current account imbalance
A focused answer to the H2 Economics learning outcome on the balance of payments. The current and capital and financial accounts, what a current account deficit or surplus means, its causes, and whether an imbalance is a problem.
9 min answer →

Is there a stable trade-off between unemployment and inflation, and what does it mean for policy?

Explain the short-run and long-run Phillips curve and use it to analyse conflicts between macroeconomic objectives
A focused answer to the H2 Economics learning outcome on the Phillips curve. The short-run trade-off between unemployment and inflation, why the long-run curve is vertical at the natural rate, and what this means for demand-side policy.
9 min answer →

What are the different kinds of unemployment, and why do they need different cures?

Explain how unemployment is measured, distinguish its types, and evaluate its costs
A focused answer to the H2 Economics learning outcome on unemployment. How it is measured, the main types (cyclical, structural, frictional and others), the appropriate policy for each, and its costs to individuals and the economy.
9 min answer →