Final answer:
The false statement about the post-World War II economy is that wage freezes reduced consumer spending. In reality, there was a surge in consumer spending due to the release of pent-up demand and savings.
Step-by-step explanation:
The answer to what was NOT true about the economy at the end of World War II is option C, "Wage freezes reduced consumer spending." This assertion is incorrect, as after the war, the United States enjoyed significant economic growth with increased consumer spending. The end of the war led to the release of pent-up demand for consumer goods and the accumulated savings during the war years, meant that many Americans were ready and able to spend. This was contrary to the situation during the war, where wage freezes and rationing were in place to support the war effort. The post-war period instead saw consumer spending surge as restrictions eased and the economy transitioned from a focus on war production to consumer goods.
The Gross National Product (GNP) and corporate profits indeed doubled, reflecting the economic boom. National debt did increase significantly to fund the wartime economy, so national debt quadrupling is a true statement. Efficiencies in farming meant less manual labor was needed, which is also true as technology improved agricultural productivity. It was the 'no-strike pledge' and high tax rates, along with war bonds and price controls, that helped contain inflation and maintain economic stability during the war rather than wage freezes limiting consumer spending.