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Q1. Since 1981, the Monetary Authority of Singapore (MAS) has centered its monetary policy on the management of exchange rate.
a) Discuss the exchange rate regime adopted by the Monetary Authority of Singapore. b) Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
Q2. In July 2011, in the economy of Sandy Island, 10,000 people were employed and 1,000 were unemployed. During August 2011, 80 people lost their jobs and didn't look for new ones, 20 people quit their jobs and retired, 150 people who had looked for work were hired, 50 people became discouraged workers, and 40 new graduates looked for work.
Calculate the unemployment rate for July 2011. Show all your work.
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