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What was remarkable about the inflation that occurred in 2021 during and after the COVID pandemic? The inflation

Multiple Choice
combined a rightward shift of AD and a leftward shift of AS.
was totally expected and plans were in place to deal with it.
was caused solely by businesses spending too much.
was not remarkable, it was a run-of-the-mill case caused by AD shifting right.

1 answer

The most accurate choice regarding the inflation that occurred in 2021 during and after the COVID pandemic is:

combined a rightward shift of AD and a leftward shift of AS.

This reflects the complexity of the situation, where increased demand (AD) from fiscal stimulus and pent-up consumer demand met with supply chain disruptions and decreased production capacity (AS), leading to significant inflationary pressures.