A Level History - America - Practice Exam

In what manner did World War I contribute to the American economic boom in the 1920s?

1. It created a surplus of agricultural products

2. It established the U.S. as a major industrial power

3. It led to a decline in immigration

4. It reduced demand for manufactured goods

The correct answer is: It established the U.S. as a major industrial power

The contribution of World War I to the American economic boom in the 1920s is best captured by the establishment of the United States as a major industrial power. During the war, the U.S. experienced increased production demands as it supplied troops and allies with weapons, vehicles, food, and other necessary materials. This surge in manufacturing significantly boosted industry sectors such as steel, munitions, and textiles. Furthermore, the war effort necessitated advancements in technology and infrastructure, which facilitated greater production efficiency and capacity. As a result of this wartime expansion, the post-war period saw an abundance of capital and resources that businesses could utilize to invest in consumer goods and other industries. This laid the foundation for the economic boom of the 1920s, characterized by consumerism, increased employment, and the rise of the stock market, all of which stemmed from the industrial growth initiated by the demands of World War I. In contrast, the other options do not accurately reflect the broader impact the war had on the economy. While agricultural surplus did occur, it was not the primary factor for the boom. A decline in immigration does not correlate directly with the surge in industrial capabilities. Lastly, rather than reducing demand for manufactured goods, the war increased