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Developmental Disorders, Learning, and Memory
Antonai Fitzgerald
Southern New Hampshire University
PSY-300-H1419 Biopsychology
October 3, 2021
Developmental Disorders, Learning, and Memory
Critical improvements and milestones in the research in the
field of biopsychology, seeking to establish ways through which
the brain and nervous functions influence human behavior.
Developments that have been made are far-reaching,
demonstrating the importance of understanding whether defects
in the brain and nervous systems could the reason behind some
development disorders, their impact on working memory and
learning. To narrow down the complex issue of biopsychology,
two development disorders have been selected, hyperactivity
disorder (ADHD) and dyslexia, which are assessed to establish
how they are related to the brain and nervous system. Scholarly
articles that have extensively covered select development
disorders are reviewed, and research design developed.
Literature Review
According to Moreau and Waldie (2016), development learning
disorders affect children, impairing their experience of learning
in the classroom. Dyslexia and attention-deficit/hyperactivity
disorder (ADHD) are two learning disorders that are evaluated
by Moreau and Waldie (2016), where they claim they cannot be
linked to the inadequate learning environment or the intellectual
ability of the children but rather to the underlying brain
function. Maturation of the prefrontal areas enables and support
executive function such as reading and cognitive processes. In
the early stages, neural activity may be disorganized and
inefficient which eventually transit to a better efficient system
but when the transition phase is defective, it leads to ADHD and
dyslexia. Further, variation in the cerebral lateralization related
to language processing and executive functions is another
mechanism responsible for dyslexia and ADHD, which
influences learning and working memory (Moreau & Waldie,
2016).
Applying a data-driven, and transdiagnostic approach, Holmes
et al. (2020) assessed cognitive dimensions to the children aged
5-18 years that had been identified to have problems in
attention, learning and working memory. It was established that
learning-related problems and working memory was stronger
and higher for the students with ADHD which are linked to
defective executive function, controlled by the frontal lobes of
the brain (Holmes et al, 2020). Ethical approval was granted to
the researchers, and guardians were involved in providing
written informed consent while verbal assent was obtained from
the children. Therefore, Holmes et al. (2020) provide rich
information demonstrating the influence of the brain and
nervous system on human behaviors such as reading and
learning.
In another study which entailed meta-analysis of voxel-based
morphometry studies, it was established that the differences in
the gray matter overlap are associated with dyslexia and ADHD,
and particularly reduced gray matter in the right caudate which
may be relevant to shared cognitive correlates in the executive
functioning (McGrath & Stoodley, 2019). Gray matter in the
brain is instrumental in information processing, where the
neuropsychological level of analysis reveals that aspects of
executive functioning which include working memory and
deficit in the processing speeds are the risk factors for dyslexia
and ADHD (McGrath & Stoodley, 2019). Technology
advancement has been pivotal in biopsychology, noted by the
fact data was visualized using MRIcroGL with ALE maps as an
overlay and the MNI152 brain as the underlay (McGrath &
Stoodley, 2019). Therefore, dyslexia and ADHD are not normal
learning and memory difficulties but are neurodevelopmental
disorders.
Ogundele (2018) outlines social, emotional and behavioral
problems, which are experienced by children with
developmental disorders such as ADHD and dyslexia responding
to the question of behavioral and social influence of said
disorders. Challenging behaviors exhibited by those suffering
from developmental and mental health disorders, disruptive
behavior patterns, etiology and risk factors to children
behavioral disorders are also explored as well as management
and treatment approaches that can be adopted by pediatricians,
widening understanding of development disorders (Ogundele,
2018). Reduced gray matter volume in the amygdala, frontal
cortex, temporal lobes, and the anterior insula is linked to the
neurodevelopment disorders such as dyslexia and ADHD.
In further exploration to establish a connection between
developmental disorders and brain functions through the
framework of neuro-auditory systems, presenting adequate
evidence on how different regions of the brain causes dyslexic
and ADHD. Various regions of the brain such as the subcortical,
prefrontal and parietal areas are connected to the auditory
cortex, with sensorimotor synchronization affecting attentive
behaviors (Serrallach et al, 2016). It noted that children
diagnosed with ADHD do have altered brain recruitment for
attention networks, and neural inefficiency contributes to
ADHD and dyslexia disorders, which demonstrates that brain
and nervous systems influence human behaviors such as
learning and working memory, and are linked to developmental
learning disorders. In the study, 147 children were the neuro-
auditory profiles designed by means of structural MRI, MEG,
and psychoacoustics tests (Serrallach et al, 2016). To meet
ethical concerns, research was approved Medical Faculty of an
institution while parents provided informed consent in the
written and children informed assent (Serrallach et al, 2016).
This shows that desired ethical principles in the research were
observed.
Dyslexia origin is traced to the physical location in the brain,
which denotes that developmental of dyslexia relates to the
brain function. Less gray matter in the left parietotemporal area,
and less white matter in the same area, are a notable feature on
the brain that are associated with dyslexia (Hudson, High &
Otaiba, 2007). Functional magnetic resonance imaging (fMRI),
the method used for imaging brain function, shows a failure of
the left hemisphere rear brain systems to function properly
during reading (Hudson, High & Otaiba, 2007). The study by
Munzer, Hussai and Soares (2020), digs deeper into
neurobiology widening understanding of developmental learning
disorders such as dyslexia are connected to the brain. Taking a
closer look at the neural organization provides an understanding
of neurological disorders. The left inferior frontal region, the
dorsal temporoparietal region, and the ventral occipitotemporal
region form the significant components of the left hemisphere
of the brain, which is crucial for reading. Cognitive
impairments based on the region that is affected, abnormal
functioning of the hub region that connects information between
different systems and RSNs, and global reduction in the
neuroplasticity of the brain, are potential causes of dyslexia.
Therefore, studies that have been reviewed demonstrate that the
brain and nervous systems are the origins of dyslexia and
ADHD.
Research Design
In the reviewed literature, the bulk of the research has been on
illustrating causes of ADHD and dyslexia, parts of the brain that
are impaired and neural disorganization that lead to two
neurodevelopmental disorders. However, the question that has
not to be addressed is how failure in the identified brain parts
and nervous systems influence human behavior. Therefore, from
this research gap, a research question has been identified which
is,” How ADHD and dyslexia disorders are linked to the brain
and nervous system and, and how do they influence human
behavior?”
Meta-analysis research design would be adopted, where results
from previous research would be assessed which have used
modern technologies such as fMRI, MRI, MEG system to study
how brain function, and identify defective parts for those with
ADHD and dyslexia. Additionally, social function, human
activities and behaviors that cut across cognitive dimension,
interpersonal relationships and learning behaviors would be
identified which could have been adversely affected when areas
of the brain and nervous systems cause ADHD and dyslexia.
This will help to address a very important question on how
ADHD and dyslexia influence human behavior.
Finally, since this research depends on previous research, it
means that no human subjects would be included in the
research. Instead, previous research from which information
would be obtained and consolidated to conclude must have met
ethical concerns. Notable ethical principles that previous
research must meet include: approval from necessary review
board where human subjects are used, informed consent from
participants that are above 18 years, parent provide informed
consent and subjects informed assent when subjects are lower
than 18 years, and protection of subjects from harm. The
sources that have been used in the literature review have been
assessed and found to meet outlined ethical principles.
Therefore, ethical concerns have been adequately addressed.
References
Holmes, J., Guy, J., Kievit, R. A., Bryant, A., Mareva, S., &
Gathercole, S. E. (2020). Cognitive dimensions of learning in
children with problems in attention, learning, and memory.
Journal of Educational Psychology.
https://psycnet.apa.org/fulltext/2020-85078-001.pdf
Hudson, R. F., High, L., & Otaiba, S. A. (2007). Dyslexia and
the brain: What does current research tell us?. The reading
teacher, 60(6), 506-515.
https://www.readingrockets.org/article/dyslexia-and-brain-what-
does-current-research-tell-us
McGrath, L. M., & Stoodley, C. J. (2019). Are there shared
neural correlates between dyslexia and ADHD? A meta-analysis
of voxel-based morphometry studies. Journal of
neurodevelopmental disorders, 11(1), 1-20.
https://jneurodevdisorders.biomedcentral.com/articles/10.1186/s
11689-019-9287-8
Moreau, D., and Waldie, K. E. (2016). Developmental Learning
Disorders: From Generic Interventions to Individualized
Remediation. Frontiers in psychology, 6, 2053.
https://doi.org/10.3389/fpsyg.2015.020 53
Munzer, T., Hussain, K., & Soares, N. (2020). Dyslexia:
neurobiology, clinical features, evaluation and
management. Translational pediatrics, 9(Suppl 1), S36.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7082242/
Ogundele M. O. (2018). Behavioral and emotional disorders in
childhood: A brief overview for paediatricians. World journal of
clinical pediatrics, 7(1), 9–26.
https://doi.org/10.5409/wjcp.v7.i1.9
Serrallach, B., Groß, C., Bernhofs, V., Engelmann, D., Benner,
J., Gündert, N., ... & Seither-Preisler, A. (2016). Neural
biomarkers for dyslexia, ADHD, and ADD in the auditory
cortex of children. Frontiers in neuroscience, 10,
324.https://www.frontiersin.org/articles/10.3389/fnins.2016.003
24/full
RMIT Classification: Trusted
ECON 1016 – Macroeconomics1
Final Assessment ‘Student Template’
Student name
Student number
Assessment Declaration
This is an individual piece of assessment. That means it must be
your own work and you can’t copy or have someone else
complete any part of the work for you.
By submitting this assessment you are declaring that you have
read, understood and agree to the content and expectations of
the Assessment declaration.
Signature (take a picture of signature and paste here)
[Note: Delete all the text of the questions and instructions given
in square brackets and simply retain the section headings and
question numbers, when you submit your final document. Read
the instructions document on “submitting the assignment on
canvas”]
SECTION A
[This section contains five questions. Each question is worth 4
marks, with section total of 20 marks. For each question,
explain whether the given statement is true, false or uncertain.
Start your answer by selecting one of the options – “True”,
“False” or “Uncertain” and then provide arguments to justify
your selection (be brief and concise and present your arguments
in 100 or less words). You need to ensure your assumptions are
clear, reasonable, and explicit if making any.]
Question 1
[The world price of oil has risen recently. For Australia (which
is a net exporter of oil), this development will imply that the
CPI will increase roughly by the same amount as the increase in
the GDP deflator.]
Answer
Question 2
[ Kylie started her new job as a junior legal assistant i n
prestigious law firm in 2018. She negotiated on a wage contract
where for the next two years (till 2020), her salary was indexed
to rise by 2% each year. In 2019, actual CPI inflation turned out
to be lower than expected. This has negatively affected Kylie’s
purchasing power and she was not able to afford the same
standard of living as before.]
Answer
Question 3
[ Redistribution policies are aimed at addressing economic
inequality. However, these redistribution policies may have the
effect of suppressing economic efficiency and growth?]
Answer
Question 4
[Suppose government allocates more funding to universities for
vaccine research. Assuming no change in government tax
revenue (and any other factor in the economy), this policy is
likely to have a positive effect on private investment in the
economy. Note: Private investment refer to investment in
physical capital by firms and residential investment by
households. (Hint: think about the effect of this policy in
Loanable Funds Market).]
Answer
Question 5
[The saving rate (gross domestic saving as a % of GDP) in
Australia, a small open economy, was 15% in 2011 while the
investment rate (domestic investment as a % of GDP) was 25%.
Consequently, there was trade surplus (when receipts from
exports exceed the expenditure on imports) for Australia in
2011.]
Answer
SECTION B
[This section contains three scenario-based questions. Each
question is worth 10 marks, with a section total of 30 marks. All
the questions have 3 subparts. All the questions are
compulsory.]
Question 1
[Singapore government has taken various fiscal policy measures
to manage the economic impacts of the COVID-19 pandemic
and support the economy through the pandemic-induced
recession.]
a) [We learnt in the class that fiscal policy measures mainly
work through aggregate demand side of the economy in the
short run. Discuss two macroeconomic effects that can make the
size of the shift in aggregate demand differ from the initial
fiscal expansion. Explain in words (120 or less) and illustrate
using a diagram (4 marks)]
Answer
b) [What is the main macroeconomic variable that can affect the
size of the multiplier and how? (explain in 100 or less words).
Suppose household saving rate (savings as % of GDP) has
increased from 54% in 2019 to 55% in 2020. How would this
affect the size of the multiplier effect (strengthen or weaken)
and why? (2+2 = 4 marks)]
Answer
c) [Using information available in Part (b), calculate the value
of multiplier (for 2020). Suppose the Singapore government had
undertaken fiscal stimulus package (assume it as increase in
government spending) worth $120 billion in 2020. Calculate
your forecast of the overall impact of the government’s stimulus
package once the full effects are circulated throughout the
economy. Write a clear sentence explaining how to interpret
this final number. (2 marks) ]
[You can use the value of multiplier rounded off to 2 decimal
places, and present your final answer also rounded off to 2
decimal places. Be sure to show all your working.]
Answer
Question 2
[We learnt in the classes that fiscal and monetary policy
measures are mainly implemented to manage short-term
economic fluctuations, called business cycles. In addition, the
policy makers are also interested in in bolstering the country’s
economic long-term productive capacity, which contributes
towards stronger prosperity and wellbeing.]
a) [A nation’s prosperity is strongly aligned to the productivity
of its labour. What are the main factors (or ingredients) that
determine the productivity of the economy? Which of these
factors pose limitations to growth? Explain (in 120 or less
words for your explanation of all the possible factors in total)
(2+2 marks)]
Answer
b) [We know from the lectures that technical progress
(innovation, ideas, knowledge breakthroughs) can help in
breaking the barriers to economic growth as discussed in part
A). Illustrate the impact of innovation (or technological
breakthrough) in the economy by using any two of the economic
models discussed in the classes. No explanation required,
provide only clearly labelled and self-explanatory diagrams.
[Hint: you can choose among AD-AS Model, Production
Function diagram and /or Business Cycle model] (2+2 = 4
marks)]
Answer
c) [List two public policy measures that can foster long term
economic growth (No explanation required.) (2 marks)]
Answer:
Question 3
[Assume, corona virus pandemic has caused major disruption in
global supply chain affecting the supply of critical inputs to
production. This has affected the supply side of Singaporean
economy on the large scale.]
a) [Illustrate the impact of corona virus induced supply side
disruption of the Singaporean economy using AD-AS model.
Carefully explain in 100 words or less highlighting any special
feature of this situation. Assume, economy was initially in
good shape, operating at its potential. (2 + 2 = 4 marks).]
Answer
b) [Following this shock to the economy (as described above),
indicate the response of the central bank in each of the below
referred scenarios, highlighting any trade-off of the central
bank’s actions. (4 marks)
i. Central bank is concerned about inflation.
ii. Central bank is concerned about falling output and rising
unemployment.
Explain policy action and associated trade-offs in each of the
above scenarios (in 75 words or less for each). Diagrammatic
illustration is not required.]
ANSWER
c) [Suppose there is no monetary policy intervention (or fiscal
action) to address the fallout of the shock (as described in part
a). In the absence of any policy intervention, what type of free
market adjustment would need to occur for the economy to
eventually return to Y*? (2 marks). (Hint: start from the
scenario you illustrated in answer to part a).
Explain is 100 or less words. Diagrammatic illustration is not
required.]
ANSWER
(End of assessment)
Page 8 of 9

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1Developmental Disorders, Learning, and Me

  • 1. 1 Developmental Disorders, Learning, and Memory Antonai Fitzgerald Southern New Hampshire University PSY-300-H1419 Biopsychology October 3, 2021 Developmental Disorders, Learning, and Memory Critical improvements and milestones in the research in the field of biopsychology, seeking to establish ways through which the brain and nervous functions influence human behavior. Developments that have been made are far-reaching, demonstrating the importance of understanding whether defects in the brain and nervous systems could the reason behind some development disorders, their impact on working memory and
  • 2. learning. To narrow down the complex issue of biopsychology, two development disorders have been selected, hyperactivity disorder (ADHD) and dyslexia, which are assessed to establish how they are related to the brain and nervous system. Scholarly articles that have extensively covered select development disorders are reviewed, and research design developed. Literature Review According to Moreau and Waldie (2016), development learning disorders affect children, impairing their experience of learning in the classroom. Dyslexia and attention-deficit/hyperactivity disorder (ADHD) are two learning disorders that are evaluated by Moreau and Waldie (2016), where they claim they cannot be linked to the inadequate learning environment or the intellectual ability of the children but rather to the underlying brain function. Maturation of the prefrontal areas enables and support executive function such as reading and cognitive processes. In the early stages, neural activity may be disorganized and inefficient which eventually transit to a better efficient system but when the transition phase is defective, it leads to ADHD and dyslexia. Further, variation in the cerebral lateralization related to language processing and executive functions is another mechanism responsible for dyslexia and ADHD, which influences learning and working memory (Moreau & Waldie, 2016). Applying a data-driven, and transdiagnostic approach, Holmes et al. (2020) assessed cognitive dimensions to the children aged 5-18 years that had been identified to have problems in attention, learning and working memory. It was established that learning-related problems and working memory was stronger and higher for the students with ADHD which are linked to defective executive function, controlled by the frontal lobes of the brain (Holmes et al, 2020). Ethical approval was granted to the researchers, and guardians were involved in providing written informed consent while verbal assent was obtained from the children. Therefore, Holmes et al. (2020) provide rich information demonstrating the influence of the brain and
  • 3. nervous system on human behaviors such as reading and learning. In another study which entailed meta-analysis of voxel-based morphometry studies, it was established that the differences in the gray matter overlap are associated with dyslexia and ADHD, and particularly reduced gray matter in the right caudate which may be relevant to shared cognitive correlates in the executive functioning (McGrath & Stoodley, 2019). Gray matter in the brain is instrumental in information processing, where the neuropsychological level of analysis reveals that aspects of executive functioning which include working memory and deficit in the processing speeds are the risk factors for dyslexia and ADHD (McGrath & Stoodley, 2019). Technology advancement has been pivotal in biopsychology, noted by the fact data was visualized using MRIcroGL with ALE maps as an overlay and the MNI152 brain as the underlay (McGrath & Stoodley, 2019). Therefore, dyslexia and ADHD are not normal learning and memory difficulties but are neurodevelopmental disorders. Ogundele (2018) outlines social, emotional and behavioral problems, which are experienced by children with developmental disorders such as ADHD and dyslexia responding to the question of behavioral and social influence of said disorders. Challenging behaviors exhibited by those suffering from developmental and mental health disorders, disruptive behavior patterns, etiology and risk factors to children behavioral disorders are also explored as well as management and treatment approaches that can be adopted by pediatricians, widening understanding of development disorders (Ogundele, 2018). Reduced gray matter volume in the amygdala, frontal cortex, temporal lobes, and the anterior insula is linked to the neurodevelopment disorders such as dyslexia and ADHD. In further exploration to establish a connection between developmental disorders and brain functions through the framework of neuro-auditory systems, presenting adequate evidence on how different regions of the brain causes dyslexic
  • 4. and ADHD. Various regions of the brain such as the subcortical, prefrontal and parietal areas are connected to the auditory cortex, with sensorimotor synchronization affecting attentive behaviors (Serrallach et al, 2016). It noted that children diagnosed with ADHD do have altered brain recruitment for attention networks, and neural inefficiency contributes to ADHD and dyslexia disorders, which demonstrates that brain and nervous systems influence human behaviors such as learning and working memory, and are linked to developmental learning disorders. In the study, 147 children were the neuro- auditory profiles designed by means of structural MRI, MEG, and psychoacoustics tests (Serrallach et al, 2016). To meet ethical concerns, research was approved Medical Faculty of an institution while parents provided informed consent in the written and children informed assent (Serrallach et al, 2016). This shows that desired ethical principles in the research were observed. Dyslexia origin is traced to the physical location in the brain, which denotes that developmental of dyslexia relates to the brain function. Less gray matter in the left parietotemporal area, and less white matter in the same area, are a notable feature on the brain that are associated with dyslexia (Hudson, High & Otaiba, 2007). Functional magnetic resonance imaging (fMRI), the method used for imaging brain function, shows a failure of the left hemisphere rear brain systems to function properly during reading (Hudson, High & Otaiba, 2007). The study by Munzer, Hussai and Soares (2020), digs deeper into neurobiology widening understanding of developmental learning disorders such as dyslexia are connected to the brain. Taking a closer look at the neural organization provides an understanding of neurological disorders. The left inferior frontal region, the dorsal temporoparietal region, and the ventral occipitotemporal region form the significant components of the left hemisphere of the brain, which is crucial for reading. Cognitive impairments based on the region that is affected, abnormal functioning of the hub region that connects information between
  • 5. different systems and RSNs, and global reduction in the neuroplasticity of the brain, are potential causes of dyslexia. Therefore, studies that have been reviewed demonstrate that the brain and nervous systems are the origins of dyslexia and ADHD. Research Design In the reviewed literature, the bulk of the research has been on illustrating causes of ADHD and dyslexia, parts of the brain that are impaired and neural disorganization that lead to two neurodevelopmental disorders. However, the question that has not to be addressed is how failure in the identified brain parts and nervous systems influence human behavior. Therefore, from this research gap, a research question has been identified which is,” How ADHD and dyslexia disorders are linked to the brain and nervous system and, and how do they influence human behavior?” Meta-analysis research design would be adopted, where results from previous research would be assessed which have used modern technologies such as fMRI, MRI, MEG system to study how brain function, and identify defective parts for those with ADHD and dyslexia. Additionally, social function, human activities and behaviors that cut across cognitive dimension, interpersonal relationships and learning behaviors would be identified which could have been adversely affected when areas of the brain and nervous systems cause ADHD and dyslexia. This will help to address a very important question on how ADHD and dyslexia influence human behavior. Finally, since this research depends on previous research, it means that no human subjects would be included in the research. Instead, previous research from which information would be obtained and consolidated to conclude must have met ethical concerns. Notable ethical principles that previous research must meet include: approval from necessary review board where human subjects are used, informed consent from participants that are above 18 years, parent provide informed consent and subjects informed assent when subjects are lower
  • 6. than 18 years, and protection of subjects from harm. The sources that have been used in the literature review have been assessed and found to meet outlined ethical principles. Therefore, ethical concerns have been adequately addressed. References Holmes, J., Guy, J., Kievit, R. A., Bryant, A., Mareva, S., & Gathercole, S. E. (2020). Cognitive dimensions of learning in children with problems in attention, learning, and memory. Journal of Educational Psychology. https://psycnet.apa.org/fulltext/2020-85078-001.pdf Hudson, R. F., High, L., & Otaiba, S. A. (2007). Dyslexia and the brain: What does current research tell us?. The reading teacher, 60(6), 506-515. https://www.readingrockets.org/article/dyslexia-and-brain-what- does-current-research-tell-us McGrath, L. M., & Stoodley, C. J. (2019). Are there shared neural correlates between dyslexia and ADHD? A meta-analysis of voxel-based morphometry studies. Journal of neurodevelopmental disorders, 11(1), 1-20. https://jneurodevdisorders.biomedcentral.com/articles/10.1186/s 11689-019-9287-8 Moreau, D., and Waldie, K. E. (2016). Developmental Learning Disorders: From Generic Interventions to Individualized Remediation. Frontiers in psychology, 6, 2053. https://doi.org/10.3389/fpsyg.2015.020 53 Munzer, T., Hussain, K., & Soares, N. (2020). Dyslexia: neurobiology, clinical features, evaluation and management. Translational pediatrics, 9(Suppl 1), S36. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7082242/ Ogundele M. O. (2018). Behavioral and emotional disorders in childhood: A brief overview for paediatricians. World journal of clinical pediatrics, 7(1), 9–26.
  • 7. https://doi.org/10.5409/wjcp.v7.i1.9 Serrallach, B., Groß, C., Bernhofs, V., Engelmann, D., Benner, J., Gündert, N., ... & Seither-Preisler, A. (2016). Neural biomarkers for dyslexia, ADHD, and ADD in the auditory cortex of children. Frontiers in neuroscience, 10, 324.https://www.frontiersin.org/articles/10.3389/fnins.2016.003 24/full RMIT Classification: Trusted ECON 1016 – Macroeconomics1 Final Assessment ‘Student Template’ Student name Student number Assessment Declaration This is an individual piece of assessment. That means it must be your own work and you can’t copy or have someone else complete any part of the work for you. By submitting this assessment you are declaring that you have
  • 8. read, understood and agree to the content and expectations of the Assessment declaration. Signature (take a picture of signature and paste here) [Note: Delete all the text of the questions and instructions given in square brackets and simply retain the section headings and question numbers, when you submit your final document. Read the instructions document on “submitting the assignment on canvas”] SECTION A [This section contains five questions. Each question is worth 4 marks, with section total of 20 marks. For each question, explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection (be brief and concise and present your arguments in 100 or less words). You need to ensure your assumptions are clear, reasonable, and explicit if making any.] Question 1 [The world price of oil has risen recently. For Australia (which is a net exporter of oil), this development will imply that the CPI will increase roughly by the same amount as the increase in the GDP deflator.]
  • 9. Answer Question 2 [ Kylie started her new job as a junior legal assistant i n prestigious law firm in 2018. She negotiated on a wage contract where for the next two years (till 2020), her salary was indexed to rise by 2% each year. In 2019, actual CPI inflation turned out to be lower than expected. This has negatively affected Kylie’s purchasing power and she was not able to afford the same standard of living as before.] Answer Question 3 [ Redistribution policies are aimed at addressing economic inequality. However, these redistribution policies may have the effect of suppressing economic efficiency and growth?] Answer Question 4 [Suppose government allocates more funding to universities for vaccine research. Assuming no change in government tax revenue (and any other factor in the economy), this policy is likely to have a positive effect on private investment in the economy. Note: Private investment refer to investment in physical capital by firms and residential investment by households. (Hint: think about the effect of this policy in Loanable Funds Market).] Answer Question 5 [The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in 2011 while the investment rate (domestic investment as a % of GDP) was 25%. Consequently, there was trade surplus (when receipts from exports exceed the expenditure on imports) for Australia in 2011.] Answer
  • 10. SECTION B [This section contains three scenario-based questions. Each question is worth 10 marks, with a section total of 30 marks. All the questions have 3 subparts. All the questions are compulsory.] Question 1 [Singapore government has taken various fiscal policy measures to manage the economic impacts of the COVID-19 pandemic and support the economy through the pandemic-induced recession.] a) [We learnt in the class that fiscal policy measures mainly work through aggregate demand side of the economy in the short run. Discuss two macroeconomic effects that can make the size of the shift in aggregate demand differ from the initial fiscal expansion. Explain in words (120 or less) and illustrate using a diagram (4 marks)] Answer b) [What is the main macroeconomic variable that can affect the size of the multiplier and how? (explain in 100 or less words). Suppose household saving rate (savings as % of GDP) has increased from 54% in 2019 to 55% in 2020. How would this affect the size of the multiplier effect (strengthen or weaken) and why? (2+2 = 4 marks)] Answer c) [Using information available in Part (b), calculate the value of multiplier (for 2020). Suppose the Singapore government had undertaken fiscal stimulus package (assume it as increase in government spending) worth $120 billion in 2020. Calculate
  • 11. your forecast of the overall impact of the government’s stimulus package once the full effects are circulated throughout the economy. Write a clear sentence explaining how to interpret this final number. (2 marks) ] [You can use the value of multiplier rounded off to 2 decimal places, and present your final answer also rounded off to 2 decimal places. Be sure to show all your working.] Answer Question 2 [We learnt in the classes that fiscal and monetary policy measures are mainly implemented to manage short-term economic fluctuations, called business cycles. In addition, the policy makers are also interested in in bolstering the country’s economic long-term productive capacity, which contributes towards stronger prosperity and wellbeing.] a) [A nation’s prosperity is strongly aligned to the productivity of its labour. What are the main factors (or ingredients) that determine the productivity of the economy? Which of these factors pose limitations to growth? Explain (in 120 or less words for your explanation of all the possible factors in total) (2+2 marks)] Answer b) [We know from the lectures that technical progress (innovation, ideas, knowledge breakthroughs) can help in breaking the barriers to economic growth as discussed in part A). Illustrate the impact of innovation (or technological breakthrough) in the economy by using any two of the economic models discussed in the classes. No explanation required, provide only clearly labelled and self-explanatory diagrams. [Hint: you can choose among AD-AS Model, Production Function diagram and /or Business Cycle model] (2+2 = 4
  • 12. marks)] Answer c) [List two public policy measures that can foster long term economic growth (No explanation required.) (2 marks)] Answer: Question 3 [Assume, corona virus pandemic has caused major disruption in global supply chain affecting the supply of critical inputs to production. This has affected the supply side of Singaporean economy on the large scale.] a) [Illustrate the impact of corona virus induced supply side disruption of the Singaporean economy using AD-AS model. Carefully explain in 100 words or less highlighting any special feature of this situation. Assume, economy was initially in good shape, operating at its potential. (2 + 2 = 4 marks).] Answer b) [Following this shock to the economy (as described above), indicate the response of the central bank in each of the below referred scenarios, highlighting any trade-off of the central bank’s actions. (4 marks) i. Central bank is concerned about inflation. ii. Central bank is concerned about falling output and rising unemployment. Explain policy action and associated trade-offs in each of the above scenarios (in 75 words or less for each). Diagrammatic illustration is not required.]
  • 13. ANSWER c) [Suppose there is no monetary policy intervention (or fiscal action) to address the fallout of the shock (as described in part a). In the absence of any policy intervention, what type of free market adjustment would need to occur for the economy to eventually return to Y*? (2 marks). (Hint: start from the scenario you illustrated in answer to part a). Explain is 100 or less words. Diagrammatic illustration is not required.] ANSWER (End of assessment) Page 8 of 9