2009 Adam Smith Economics Tuition Agency.

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Adam Smith Economics Tuition Agency

GCE A-LEVEL ECONOMICS REVISION

REVISION TOPIC: MACROECONOMICS OBJECTIVE - INFLATION

Discussion Questions:

Essay Exercise Question 1 (Source: ______________________________________) (a) Explain what causes inflation. [10] (b) Discuss whether an increase in the rate of inflation is more likely to cause

problems for the domestic or the external sector of the Singapore economy. [15]

Essay Exercise Question 2 (Source: ______________________________________) Price levels in high-income economies such as Hong Kong, Singapore and Macau were fairly comparable, with Singapores about 10 per cent lower than Hong Kongs.

(a) Explain the benefits of a low rate of inflation. [10]

(b) Assess the policies that the Singapore government could adopt to keep inflation rate low. [15]

Essay Exercise Question 3 (Source: ______________________________________) The policies which a government usually adopts to reduce the rate of inflation in an economy may do more harm than good.

Explain and evaluate the policies which a government may adopt to reduce the rate of inflation in an economy. [25]

Case Study Question: 2008 GCE A-Level November H1