Question

The second half of the 1940s was a period of A. recession. B. no economic growth. C. very slow economic growth. D. fairly high economic growth.

Answer 1

Answer- The correct answer is D ie., fairly high economic growth. During the 1930s the US economy was not growing due to rise unemployment level, formation of unions of labor who demanded more rights and wages, lack of demand of goods. Also, the US economy occurred a recession during the period of 1937-38, because of decline in the production of consumables , durable goods and thus there was merely no industrial growth during such period.

After almost 13 months of US struggle to get out of the economic recession period, it finally got to see some growth in the period of 1938 and the economy started to get on it’s feet and started growing. Due to wars going on in tge world like Germany was against the Great Britain, thus it gave the US economy an opportunity to increase it’s production and improve it’s economy. Hence US economy showed signs of fair growth during the late period of 1940.

Also, after the attack on pearl harbour, war started against the US and hence as every war demand goods and weapons thus, production in US economy started to grow more significantly. During such period the production of goods increased and the unemployment rate fell as well.