6

Section B

One or two of your three chosen questions must be from this section.

4 Global growth remains subdued. Trade tensions between the United States and China
have escalated and threatened supply chains involved in the production of key
intermediate goods. The threat of military conflicts impacting Middle East oil production
has put upward pressure on energy prices.

Source: World Economic Outlook, 2019

(a) In light of the above developments, explain how demand and supply-side factors
account for a fall in the rate of economic growth in a small and open economy like
Singapore.
[10]

(b) Discuss the extent to which exchange rate and supply-side policies to prevent a fall
in economic growth in Singapore are appropriate for all countries.
[15]

5 (a) Explain how globalisation can improve a country’s export competitiveness. [10]

(b) Discuss whether conflicts between macroeconomic objectives are the main consideration in
the choice of policies adopted by a country to reduce its balance of trade deficit.
[15]

6 To increase labour productivity, the Singapore government has encouraged workers to continually
upgrade their skills as well as firms to push for greater automation and innovation.

(a) Explain why a government may be concerned about a fall in labour productivity. [10]

(b) Evaluate whether policies to increase labour productivity would improve the standard
of living of a country. [15]

9757/02/Prelims/Y6/2022