What is the Global Financial Crisis (GFC)? What caused it and why did it spread? What impact did the GFC have on the economy in Singapore? Discuss.

Incorporate each of the following elements into your essay:

• Undertake an overview of the GFC looking at its causes
• Address how the GFC became a 'global' crisis
• Show evidence of how the Singaporean economy was impacted by the GFC. Remember to use reputable sources in your research and reference. As part of this task you should focus on key macroeconomic aggregates including economic growth and unemployment.
• To support your answer conduct desk-top research to draw on data from the Department of Statistics Singapore(Links to an external site.). Use official data related to Singapore's National Accounts (GDP) to present ONE chart tracking GDP, or some component of GDP or economic growth that is relevant and linked to your analysis to show changes over time. (Hint: For this go into TableBuilder(Links to an external site.)and explore data under Economy, National Accounts and consider the various ways data concerning GDP can be represented). It is important that you reference the precise data from SingStat that you use to generate your chart. Make sure your chart is focused on the appropriate time period to enable meaningful comparison both pre and post GFC and briefly discuss how this evidence assists in understanding the impact stemming from the GFC on Singapore.
• Focusing upon the Singaporean economy, use the IS-LM model in 2 steps to address the following:
  • i) First, use the IS-LM model to illustrate and discuss the impact of the GFC on interest rates and economic activity. Remember to explain any changes you have made to the curve(s) and/or any shift(s) you have shown.
  • ii) Second, as a consequence of what you have shown in step i) use the IS-LM framework to illustrate and discuss the impact of policy responses from both the government and central bank to the GFC and what this means for interest rates and economic activity. Remember to explain any changes you have made to the curves and/or any shift(s) you have undertaken.