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Multiple Choice

During a global health crisis, many governments implemented policies that increased household disposable income through direct payments. Concurrently, public health measures led to a significant shift in consumer spending away from services (like dining and travel) and towards goods (like home electronics and furniture). At the same time, global production and shipping networks faced major disruptions. Which economic phenomenon best explains the resulting widespread product shortages and price increases for these goods?

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Updated 2025-08-14

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