Economics Tuition – Video by Economics Focus

This e-learning video developed by JC Economics Tutor Simon Ng of Economics Focus examines the topics of Economic Growth and Inflation. The video focuses on the economic impacts of a slowdown in economic growth, such as the inflationary condition. The question demands students to identify the adverse effects of slower economic growth rate to show how inflation rate is high. By doing so, students can then recognise the importance of keeping inflation rate low.

Singapore experienced a quarterly growth rate of -0.7% from April to June 2012. However, during the same period, inflation rate remained high at about 5%. Explain why inflation can remain high despite a slowdown in economic growth in Singapore. [10]

Analysis of The Question

For this question, the requirement of the question is to be able to understand what a slowdown in economic growth means and be able to understand that economy is along the rising cost condition while a moderate aggregate demand exists.

Source of Information

Part of knowledge needed for this question:

  • Define inflation and economic growth

  • Explain what slow economic growth means

  • Explain and diagrammatically illustrating how slow economic growth may be accompanied by an increase in inflation when the economy is at rising cost condition