Question

Which of the following best describes the state of the US economy at the end of World War II?

a) It was starting to come out of the Great Depression.
b) It was out of the Great Depression and doing better.
c) It was one of the most powerful economies in the world.
d) It was entering another recession.

Answer 1

a. It was starting to come out of the Great Depression.

Answer 2

The correct answer is B) It was out of the Great Depression and doing better.

Before entering World War II, the US was slowly recovering from the Great Depression but employment was still high and the production of goods was still not to the level of the 1920's. However, World War II changed this. Due to the increased need of goods for the war effort (guns, ammunition, tanks, etc.) companies increased production and higher millions of workers all over the US. By the time World War II ended, unemployment dropped by double digits and the economy was prospering.