ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At the end of WWII many countries were rebuilding. The rebuilding increased AD in
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both the US & Europe
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the USA but not Europe
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Europe, but not the USA
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neither the USA, nor Europe
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Explanation:
Detailed explanation-1: -Western Europe and Asia were rebuilt through the American Marshall Plan, whereas Central and Eastern Europe fell under the Soviet sphere of influence and eventually behind an “Iron Curtain". Europe was divided into a US-led Western Bloc and a USSR-led Eastern Bloc.
Detailed explanation-2: -President Harry Truman signed the Marshall Plan on April 3, 1948, and aid was distributed to 16 European nations, including Britain, France, Belgium, the Netherlands, West Germany and Norway.
Detailed explanation-3: -That a Europe more prosperous than ever would emerge from this apocalypse astonished the world. Most economies shattered by war returned to pre-war levels of output within five years.
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