MAKING OF A NEW NATION 1776 1800
SHAYS REBELLION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the american economy was disrupted by the cost of the war
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the american economy flourished
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cheap british goods flooded the american markets and hurt the sales of american goods
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great britain offered to bail out the american economy
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Detailed explanation-1: -Between 1774 and 1789, the American economy (GDP per capita) shrank by close to 30 percent. Devastation of real property, a contraction of the labor force due to war deaths and injuries, the cessation of British credit, and exclusion from markets in Britain and West Indies resulted in widespread economic collapse.
Detailed explanation-2: -The Revolution’s most important long-term economic consequence was the end of mercantilism. The British Empire had imposed various restrictions on the colonial economies including limiting trade, settlement, and manufacturing. The Revolution opened new markets and new trade relationships.
Detailed explanation-3: -The new nation also faced economic and foreign policy problems. A huge debt remained from the Revolutionary War and paper money issued during the conflict was virtually worthless. In violation of the peace treaty of 1783 ending the Revolutionary War, Britain continued to occupy forts in the Old Northwest.