Recent Changes

Internal Macroeconomic Goals
(i) Sustainable Economic Growth
Economic Growth
- Expansion of increase in an economy's level of output or Gross Domestic product (GDP) over time
Types:
a) Actual Economic Growth
- Annual percentage increase in national output
- Movement within PPC
b) Potential Economic Growth
- Annual percentage increase in an economy's capacity to produce
- Shifting of PPC
Indicators:
a) Real GDP growth
b) Real GNP growth
Problem: Negative Economic Growth
- Reduction in economic activities of an economy
- Measure in period of two quarters
Solution:
- Conducive environment to attract foreign investment to foster economic growth
- Maintaining sound infrastructure to provide ease for economic activities
- Investing heavily on education to train workers
(ii) Full Employment
Full employment
- Condition of an economy, where all or nearly all people, of working age, are willing and able to work at the prevailing wages and working condition
Indicator:
Unemployment rate
Problem: Unemployment or underemployment
- Number of people of working age who are without work, but they are willing and able to take up employment
- Types: (a) Structural Unemployment
- Arises when workers do not have the necessary skills that employers require in growing industries
(b) Frictional Unemployment
- Arises when workers who are retrenched, or who have resigned or who are joining the labour market but cannot find jobs immediately
(ca)) Cyclical Unemployment
- Arises from a lack of demand for goods and services during an economy recession
Solution:
- Increasing public investment
- Reducing taxes during recession
- Provide necessary skills for labour force
(iii) Price Stability
Price Stability
- Minimum change in overall prices of final goods and service
- Minimum change in general price level
Indicators:
- Consumer Price Index
Problem: Inflation
- Sustained increase in general price level in an economy
- Types: (a) Demand Pull
- Too much money chasing too few goods
(b) Cost Push
- Rising Cost of Production
Solution:
- Varying interest rate
- Varying exchange rate
- National Wave council (Singapore)
- Foreign Labour Migration Policies (Singapore)
(IV) Balance of Payment Equilibrium
Balance of Payment
- Summarised statement of monetary transactions between residents of one country and the rest of the world during a specific period of time
Type of BOP account:
a) Current Account
- Flow of goods and services
- Flow of income in and out of country
b) Financial Account
- Cross-border purchases and sales of assets
- Net Direct Investment etc
c) Capital Account
- Debt forgiveness
- Acquisition and disposal of non-financial assets
Types of BOP equilibrium
a) BOP surplus
- Export > Import
b) BOP deficit
- Import > Export
Problem: BOP deficit
- leads to increase in unemployment
Solution:
- Imposing tariffs
- Depreciation of currency

Definition
- Different quantities of a product consumers are willing and able to buy at each possible price during a given period of time, ceteris paribus
- Desire backed by purchasing power
Demand Curve
{demand_curve.gif}
- Always negative due to Law of Demand
- Law of Demand states that an inverse relationship exist between price of a good and the quantity demanded of the good, ceteris paribus
Movement and Shifts in Demand Curve
Movement in Demand Curve
- Change in quantity demanded arising solely from change in price of good, ceteris paribus
Shifts in Demand Curve
- Changes in demand caused by several non-price determinants
- Factors:
a) P ( Change in Price of Related Good)
(i) Substitute
- Alternatives that satisfy same consumer wants
- When price of A decrease, demand of A increase, thus demand of B decrease
(ii) Complements
- Good jointly demanded to provide satisfaction
- When price of A decrease, demand of A increase, thus demand of B increase too
b) T ( Change in Taste and Preferences)
(i) Fashion or Fad
- Demand usually high for fashionable goods
(ii) Advertising
- Effective advertising creates demand/wants
(iii) Government Policies
- Taxes and Incentives
(iv) Seasons, Festivals and Weathers
c) I ( Change in consumer income)
- Affordability or ability of consumers to buy good
(i) Normal Good
- Demand for the good is positively related to change in income
(ii) Inferior Good
- Demand for the good is negatively related to change in income
- However, concept of normal and inferior good differs for people
d) D ( Change in Demographics)
(i) Size
- Larger the population size, larger the potential demand
- But potential demand also influenced by purchasing power of population
(ii) Age/Sex
- Taste and preferences of consumers influenced by composition of population
e) E ( Change in consumers' expectations)
(i) Change in expected income
- Rise in pay = more willing to spend
- Drop in pay = less willing to spend
(ii) Change in expected price
- Price rise in future, demand increase now
- Price drop in future, demand decrease now
(iii) Change in speculative demand
- Purchase of goods meant for profit at a later time

- Angle of Deflection = k ( Charge / Mass)
Atomic Number, Mass Number and Isotopes
- Xb
- Xa
Atomic {atomic.jpg}
Atomic number, bZ
- Number of protons
- Determines Chemical identity
Mass number, aA
- Total number of protons and neutrons
Isotopes

- Angle of Deflection = k ( Charge / Mass)
Atomic Number, Mass Number and Isotopes
- XabXb
- Xa
Atomic number, b
- Number of protons

(ii) Rule 2 : Hund's Rule of Multiplicity
- Each orbital must be singly occupied before electrons are paired
Expulsion Principle
- Electrons within the same orbital has to have opposite direction, to reduce inter-electronic repulsion
Physical Periodicity

Atoms and Properties of Subatomic particles
Atom
- Smallest component of an element having the chemical properties of the element
- Made up of electron, proton and neutron
Subatomic Particles
Property
Proton
Electron
Neutron
Relative Charge
+1
-1
0
Relative Mass
1
1/1836
1
- Angle of Deflection = k ( Charge / Mass)
Atomic Number, Mass Number and Isotopes
- Xab
Atomic number, b
- Number of protons
- Determines Chemical identity
Mass number, a
- Total number of protons and neutrons
Isotopes
- atoms with same number of electrons but different number of neutrons
Arrangement of Electrons
- The Principal Quantum Number, n, describes the minimum energy level of an electron and the size of an atomic orbital
- Maximum number of electrons that can occupy the orbitals = 2n2
- Each principal quantum shell can be subdivided into subshells
Principal Quantum Shell
Number of Subshell
Type of Subshell
Notation for Subshell
1
1
s
1s
2
2
s,p
2s,2p
3
3
s,p,d
3s,3p,3d
4
4
s,p,d,f
4s,4p,4d,4f
Atomic Orbitals
- Defined as region of space with a 90% probability of finding an electron
- Each S subshell only has one s orbital
{sorbital.gif}
- Each P subshell has 3 p orbital
{porbital.gif}
Electronic Configuration
(i) Rule 1 : ' Building-Up' Principle
{OrbitalEnergies.gif}
(ii) Rule 2 : Hund's Rule of Multiplicity
- Each orbital must be singly occupied before electrons are paired
(iii) Rule 3 : Pauli's Expulsion Principle
- Electrons within the same orbital has to have opposite direction, to reduce inter-electronic repulsion
Physical Periodicity
Effective Nuclear Charge, Zeff
- Net Nuclear Charge experienced by an outer electron
- Zeff = Z - S , where Z is nuclear charge and S is shielding effect
Changes in Zeff
(i) Down the group
- Nuclear charge increase as no. of protons increase
- Shielding effect increase as no. of orbitals increase
- Zeff relatively the same
(ii) Across period
- Nuclear charge increase as no. of protons increase
- Shielding effect constant as it is the same orbital
- Zeff increase
- Zeff increase = Electrostatic Forces of Attraction Increase = Ionization Energy Increase / Atomic Radius Decrease
- Higher nuclear charge = smaller atomic radius
- Higher shielding effect = larger atomic radius
Trend in Atomic Radius
(i) Across the period
- As Zeff increase, EOFA increase and Ar decrease
(ii) Down the group
- No. of Quantum Shells increase, Ar increase
Trend in Ionic Radius
(i) Special:
- As Anion has one more quantum shell than cations, Ar of Cations < Ar of Anions
Ionization Energy
- nth Ionization energy is the energy required to remove 1 mole of electrons from 1 moles of gaseous (n-1) positive ions to form1 moles of gaseous ions with n+ charge
Factors that affect IE
(i) Nuclear Charge, Z
- Increase in nuclear charge = Increase in EOFA = Increase in IE
(ii) Size of atoms
- Ar decrease = Increase in EOFA = Increase in IE
IE graph
- IE1 < IE2 < IE3
- As more electrons are removed, there are more and more protons compared to electrons. Therefore EOFA increase and IE has to increase
- Jumps in IE represents change in quantum shell
Trends of IE
(i) Down the group
- No. of Quantum Shell Increase = Ar increase = EOFA decrease = IE decrease
(ii) Across the period
- Increase in no. of protons = increase in nuclear charge = Increase in EOFA = Increase in IE
(iii) Anomalies
a) Group 2 and 3
- Different subshell; Group 2 is S subshell and Group 3 is P subshell
b) Group 5 and 6
- Electrons in Grp 5 all unpaired while there is a paired electron in Grp 6, causing interelectronic repulsion, lowering IE for Group 6