Economies’ current problem is that substitution is not possible in the short term

Economies’ current difficulties are largely related to the problem that substitution effects do not exist in the short term. This is why: When demand began to shift suddenly from services to goods in 2020, it was not possible to substitute the supply of goods (and commodities) for the supply of services, hence the sharp rise in relative goods prices; When Europe stopped importing commodities from Russia and Ukraine, it was not possible to substitute them in the short term with other commodities (or to substitute them with consumption of other goods whose production does not use these commodities), leading to shortages; When the labour supply falls, economywide or in certain sectors, it is impossible to substitute capital (technological progress) for labour in the short term, leading to labour shortages.