Economics class: White House scrambles to address global chip shortage
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Registration/details here.
Demand & supply, long run aggregate supply, globalisation
Click to read the article below and then answer the questions:
Using a diagram, analyse the effect on the semiconductor market of:
i) a surge in demand for consumer electronics; and
ii) the US sanctions on SMIC.
The article refers to ‘bottlenecks that are hurting American workers.’ Using a Keynesian long run aggregate supply curve, explain the macroeconomic consequences of bottlenecks in the economy.
Evaluate the economic costs and benefits of reshoring semiconductor manufacturing to the US.
Gavin Clarke, Emmanuel College