Question

v.6. after world war i, millions of soldiers returned home at the same time that wartime factories shut down or reduced production. combined with the cancellation of government contracts and the rapid shift back to a consumer peacetime economy, which conclusion best explains how these changes shaped the u.s. economy during demobilization?a. the quick return to peace created a labor shortage that increased wages across most industries.b. the end of war production led to an immediate increase in foreign trade that boosted american businesses.c. the return of soldiers caused the federal government to expand wartime agencies to stabilize the economy.d. the sudden drop in wartime production and the surge of returning workers created unemployment, falling wages, and economic recession.7. what resulted from american demobilization after world war i?a. an economic boom.b. a period of increased industrial production.c. a period of strict economic regulation.d. an economic recession.

Explanation:

For question 6:

After WWI, the end of wartime production and return of soldiers led to a large number of workers re-entering the labor market, while war factories closed. This created a surplus of labor, not a shortage; foreign trade did not immediately boom, and wartime agencies were scaled back, not expanded. The drop in production and surge of workers caused unemployment, falling wages, and recession.

For question 7:

American demobilization after WWI involved winding down wartime production, canceling government contracts, and millions of soldiers returning to the workforce. This sudden shift led to a decline in economic activity, resulting in an economic recession, not a boom, increased industrial production, or strict regulation.

Answer:

1. D. The sudden drop in wartime production and the surge of returning workers created unemployment, falling wages, and economic recession.
2. D. An economic recession.