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  • Demand & supply, long run aggregate supply, globalisation

Click to read the article below and then answer the questions:

White House scrambles to address global chip shortage

  • 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

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