Economics Assignment: Production, Labour Market, Price Level Analysis

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ECONOMICS ASSIGNMENT

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Contents
1.0 Introduction..........................................................................................................................3
2.0 Production and output performance analysis.......................................................................3
2.1 GDP......................................................................................................................................3
2.2 GDP growth rate..................................................................................................................3
2.3 GDP per capita.....................................................................................................................4
2.4 Government measure- GDP.................................................................................................5
3.0 Labour market analysis........................................................................................................6
3.1 Types of unemployment.......................................................................................................6
3.2 Unemployment trend............................................................................................................6
3.3 Government measures- Unemployment...............................................................................7
4.0 Price level analysis...............................................................................................................8
4.1 Inflation trend.......................................................................................................................8
4.2 Causes of inflation................................................................................................................9
4.3 Government measures inflation...........................................................................................9
5.0 Conclusion..........................................................................................................................10
Reference..................................................................................................................................11

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1.0 Introduction
The Singaporean economy is one of the most business-friendly economies of the world. The
economy is a free market economy with a low tax rate that is favourable for the business
operation. The economy is the 3rd least corrupt economies of the world and the per capita
GDP performance of the economy is impressive. The economy focuses mainly on business
innovations and entrepreneurship that have the potential to further contribute to the economic
prosperity of the country. The study aims to examine the strength of the economy based on
the values of different economic indicators.
2.0 Production and output performance analysis
2.1 GDP
GDP is the total gross value of all the goods and services produced within the boundary of
the economy for a certain period. GDP is one of the most widely used economic indicators
that measure the strength of an economy. To avoid the double calculation problems, the
calculations of GDP only include the gross value of the final products of the economy (Low,
Roberts & Whiting, 2015). The raw value of all goods and services produced in the economy
is known as the nominal GDP of an economy, whereas, the inflation-adjusted GDP is known
as the real GDP of the economy. The current GDP of Singapore is 372.8 billion USD.
2.2 GDP growth rate
The growth rate of GDP is referred to as the percentage changes in GDP from one point to
another. GDP growth rate helps in understanding the progress of the economy towards a
national goal.

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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GDP growth rate
GDP growth rate
Figure 1: The GDP growth rate of Singapore over the years
(Source: World Bank Open Data, 2019)
The current economic growth rate of Singapore is 3.9% which is a reduction from the growth
rate of the previous year. The current trend is a reduction in the GDP growth rate of the
economy (Khalıd & Ahmad, 2017). In the year 2009, the GDP growth rate of the economy
was the worst mainly due to the global financial crisis. It recovered in the next year only to
have a downward trend after that as can be seen from the above figure.
2.3 GDP per capita
GDP per capita is another economic indicator that helps in comparing the economic
performance of different countries of the world. This is GDP divided by the population of
that country (Yang et al. 2017). There are many countries in the world whose GDP are high
mainly as it has a huge number of populations. GDP per capita is a population-adjusted GDP
of a country.