POST WAR WORLD 1946 1959
KOREAS PARTITION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It led to increased spending in support of the war effort.
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It caused a severe recession throughout the country.
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It strengthened economic ties between the U.S. and China.
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It encouraged foreign trade agreements with other countries.
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Detailed explanation-1: -The impact of the Korean War on the Economy of the United States refers to the ways in which the American economy was affected by the Korean experience from 1950 to 1953. The Korean War boosted GDP growth through government spending, which in turn constrained investment and consumption.
Detailed explanation-2: -Among all, damages in the mining industry were the worst; about 51 % of the industry was destroyed and the estimated amount of damage was as high as US$549 million, accounting for 23.3% of all industrial damages. Damage of power plants was even more devastating with nearly 80% destroyed.
Detailed explanation-3: -On June 27, 1950, the United States officially entered the Korean War. The U.S. supported the Republic of Korea (commonly called South Korea), in repelling an invasion from the Democratic People’s Republic of Korea (commonly called North Korea). The Korean War was a conflict that emerged after World War II.
Detailed explanation-4: -Public debt and levels of taxation increased during most conflicts; • Consumption as a percent of GDP decreased during most conflicts; • Investment as a percent of GDP decreased during most conflicts; • Inflation increased during or as a direct consequence of these conflicts.
Detailed explanation-5: -The aftermath of the Korean War set the tone for Cold War tension between all the superpowers. The Korean War was important in the development of the Cold War, as it showed that the two superpowers, United States and Soviet Union, could fight a “limited war” in a third country.