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.

Specification: 

• 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