USA HISTORY

Detailed explanation-1: -World War I led to a new approach in Federal agricultural policies–a guarantee of minimum prices for wheat and hogs. Farm prices rose, the Government called for increased production, and farmers responded. Large quantities of food went to our overseas allies and to relieve hunger in Europe after the War.

Detailed explanation-2: -Europe. Gross domestic product (GDP) increased for three Allies (Britain, Italy, and the U.S.), but decreased in France and Russia, in the neutral Netherlands, and in the three main Central Powers. The shrinkage in GDP in Austria, Russia, France, and the Ottoman Empire reached 30 to 40%.

Detailed explanation-3: -In Europe agriculture developed through a combination of migration and diffusion. The oldest sites with agriculture are along the Mediterranean coast, where long-distance population movement and trade could be easily effected by boat.

Detailed explanation-4: -Rockoff estimates the total cost of World War I to the United States at approximately $32 billion, or 52 percent of gross national product at the time. He breaks down the financing of the U.S. war effort as follows: 22 percent in taxes, 58 percent through borrowings from the public, and 20 percent in money creation.