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Question 1
The pandemic has disrupted supply chains around the world, and particularly in the United States. Using your own independent research, explain what the supply chain is, its importance in the American economy and the global economy, and why the pandemic has disrupted it.
Question 2
Draw a diagram of the American economy using the aggregate demand and aggregate supply (AD/AS) model before, and then after the supply chain disruptions due to the pandemic. Clearly show on your diagram(s) the before and after effects for the key macroeconomic variables and fully explain how they have been impacted. Is the actual experience in the US consistent with your diagram? Explain your answer.
Question 3
The American Government is aware of the sensitivity of the economy to supply chain issues and has initiated a response. Using your own independent research, explain the actions the American Government has undertaken to combat the economic impact of the supply chain disruptions. Using your diagram from Question 2, show how the government action might impact the American economy. How successful do you think the government action is/will be?
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