ECON1016: Modelling the impact of COVID-19 on the Singaporean Economy using the Aggregate Demand-Aggregate Supply: Macroeconomics Report, RMIT, Singapore

Section 1: Modelling the impact of COVID-19 on the Singaporean economy  Using the Aggregate Demand-Aggregate Supply (AD-AS) Model and the Aggregate Expenditure (AE) Model consider the impact that COVID-19 has had on the Singaporean economy.

Specifically address each of the dot points provided below: Illustrate the impact of the crisis on the domestic economy using both the AD-AS model and the AE model. Ensure you clearly label all parts of both the diagrams and show any change from the original equilibrium positions.

Discuss the assumptions reflected in your models that explain the resulting final equilibrium positions demonstrated. What does the change in equilibrium position entail for the Singaporean economy’s economic performance? To support your answer draw upon relevant evidence concerning any changes in an economic performance captured by reported key macroeconomic aggregates including economic growth, unemployment, and inflation that compare pre-pandemic and post-pandemic outcomes.

Be sure to cite any sources of evidence you use to support your claims. Comment on the extent to which the real-world evidence is consistent with model predictions. Hint: data from assignment 1 may be used to support your analysis along with data/statistics reported from reputable sources such as the Department of Statistics Singapore (SingStar)

Section 2: The economic implications of government responses to the COVID-19 pandemic  In responding to the health crisis posed by COVID-19 Singapore’s government have responded by imposing measures that include border restrictions and lock-downs. Also, it is recognized that central to adapting to learn to live with the virus vaccination will play a crucial role.

This section addresses the economic implications stemming from the government’s response to the COVID-19 pandemic. Specifically address each of the dot points provided below: Discuss how efforts to mitigate health risks and contain the spread of the virus have impacted: the Singaporean economy in general;

the Services producing industries compared to the Goods-producing industries (refer to the national accounts if you are not sure which specific industrial sectors are included in each of these categories) Based on your analysis from both the first assignment and the present one, outline the costs and benefits associated with the government support and stimulus measures provided during the pandemic which have aimed to mitigate the negative economic impacts associated with the COVID-19 pandemic.

Section 3: International comparison and benchmarking

COVID-19 has impacted the world. During the pandemic, we have witnessed countries responding in different ways to deal with both the health and economic crisis it has caused. International organizations like the IMF and OECD have compared policy responses from different countries that focus upon aspects related to dealing with the economic impacts stemming from COVID-19.

In this section complete your report by offering some international comparison and specifically address the dot points provided below: How does Singapore’s response to the pandemic compare to other nations and what economic implications stem from this?

Support your answer by drawing upon evidence from 2 other countries (of your choice) to highlight areas of similarity and difference and comment on what you believe is an effective approach from the government to support both short-term recovery and long-term economic prosperity.

Discuss why international efforts around the world at combating COVID-19 at a global level is in Singapore’s (and other nations’) nation interest as well. In your answer focus upon the importance of openness within the global economy.

In your response provide relevant examples or evidence to support your answer. Conclude your report by outlining how the need by the government to balance both health and economic outcomes in the case of COVID-19 links to broader philosophical debates about the role of government.