THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It created great economic prosperity.
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It plunged the nation into a recession.
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It had no effect on the economy.
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It led to extremely high unemployment.
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Detailed explanation-1: -World War I sped up American industrial production, leading to an economic boom throughout the ‘Roaring Twenties. ‘ While the war was a devastating experience for France and the United Kingdom, these countries were able to recover economically without too much difficulty.
Detailed explanation-2: -When the war began, the U.S. economy was in recession. But a 44-month economic boom ensued from 1914 to 1918, first as Europeans began purchasing U.S. goods for the war and later as the United States itself joined the battle.
Detailed explanation-3: -The war brought full employment and a fairer distribution of income. Blacks and women entered the workforce for the first time. Wages increased; so did savings. The war brought the consolidation of union strength and far-reaching changes in agricultural life.
Detailed explanation-4: -The United States suffered a moderate economic recession from 1918 to 1919, but a mild rebound in the second half of 1919. The United States endured a more serious recession in 1920 and 1921, when the global economy collapsed.