Final answer:
The end of World War I led to a transition in the U.S. economy, causing a shortage of domestic goods and a significant rise in inflation. This resulted in an increase in product prices. Despite these challenges, the era post-World War II marked a period of material prosperity and economic growth for the U.S.
Step-by-step explanation:
Impact of World War I on the U.S. Economy
At the end of World War I, the U.S. economy faced a significant transition. The shift from wartime production to peacetime goods like toasters and cars led to a shortage of domestic goods and a subsequent sharp rise in inflation. As workers struggled with the rising cost of living, there was a wave of strikes in 1919 demanding better wages and hours. Consequently, this aspect, combined with a recalibration of the economy from wartime production, caused an increase in product prices (B).
As for the broader effects, the war did not increase overall prosperity. Despite higher wages and longer hours, the inflation meant that workers' savings bought less than before. Labor strikes were frequent, and although many were crushed by state and federal intervention, they did contribute to the recognition of workers' demands and the subsequent rise in economic standards during the 1920s.
Ultimately, the United States emerged from World War II with an advantage over war-torn Europe and Asia. The U.S. faced an era of material prosperity, with new technologies and increased international trade. However, this was also a time of domestic challenges, such as the integration of women into the postwar economy and the debate over New Deal policies in peacetime.