HISTORY
WORLD WAR II
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the U.S. economy continued to decline.
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Unemployment rates increased and production in the factories decreased.
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It caused the U.S. to go into a second Depression.
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Unemployment rates dropped and production increased.
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Detailed explanation-1: -On the home front, the massive mobilization effort during World War II had put Americans back to work. Unemployment, which had reached 25 percent during the Great Depression and hovered at 14.6 percent in 1939, had dropped to 1.2 percent by 1944-still a record low in the nation’s history.
Detailed explanation-2: -World War II was financed through debt and higher taxes, by the end of the war, U.S. gross debt was over 120% of GDP and tax revenue increased more than three times to over 20% of GDP. Although GDP growth skyrocketed to over 17% in 1942, both consumption and investment experienced a substantial contraction.
Detailed explanation-3: -As millions of men and women entered the service and production boomed, unemployment virtually disappeared. The need for labor opened up new opportunities for women and African Americans and other minorities. Millions of Americans left home to take jobs in war plants that sprang up around the nation.
Detailed explanation-4: -The approval of the Lend-Lease Act shifted the U.S. economy into a wartime economy. Many businesses moved from the production of consumer goods to the production of war supplies and military vehicles. American companies began producing guns, planes, tanks, and other military equipment at an unbelievable rate.