Question

How was the economy of the United States affected by World War I?

A) The United States' economy was hurt because the government increased regulations.
B) Unemployment increased when the men returned from the war, so the economy suffered.
C) The war had little effect on manufacturing and agriculture.
D) The federal government mobilized the economy for war.

Answer 1

The United States' economy was affected by World War I as the federal government mobilized the economy for war. The government took control to ensure that factories were operating at peak capacity.

Step-by-step explanation:

The United States' economy was affected by World War I as the federal government mobilized the economy for war. The government took control to ensure that factories were operating at peak capacity, leading to a shift in production from civilian goods to military vehicles. Additionally, the war had a negative impact on foreign trade, as many countries were experiencing an economic depression and were unable to purchase American products. Furthermore, the end of the war resulted in economic upheaval, with inflation skyrocketing and shortages of domestic goods. These factors contributed to the overall economic challenges faced by the United States during and after World War I.