Question

Which statement best describes the American economy in the 1920s?

a. Wages decreased and the economy appeared weak.
b. Unemployment was at an all-time high.
c. Stock prices rose and the economy appeared healthy.
d. Small businesses dominated American industry. Please select the best answer from the choices provided A B C D

Answer 1

The American economy in the 1920s appeared healthy with rising stock prices, making option c the correct statement.

Step-by-step explanation:

The statement that best describes the American economy in the 1920s is option c. Stock prices rose and the economy appeared healthy.

The 1920s, also known as the Roaring Twenties, was a period of economic prosperity in the United States.

The stock market experienced a boom, and stock prices soared, creating a perception of a healthy economy.

However, this prosperity was not evenly distributed, as the wealth gap widened and wages for many workers remained stagnant.

During this time, small businesses did play a role in American industry, but they did not dominate it.

Large corporations, such as US Steel, Standard Oil, and General Electric, had significant influence and control over workers and prices.

However, the focus of the statement is on the overall state of the American economy, which appeared healthy due to the rising stock prices.

Answer 2

The statement that best describes the American economy in the 1920s would be that "c. Stock prices rose and the economy appeared healthy," since this was referred to as the "roaring 20s".