A Level History - America - Practice Exam

What issue did rising inflation and unemployment create after World War I?

1. Stability in wages

2. Increased government employment

3. Widespread labor strikes

4. The growth of trade unions

The correct answer is: Widespread labor strikes

The correct choice is C, as rising inflation and unemployment after World War I led to widespread labor strikes across the United States. In the post-war period, the economy struggled to transition from a wartime to a peacetime footing. Soldiers returning from the war flooded the job market, which contributed to unemployment. Concurrently, inflation surged, eroding purchasing power and leading workers to demand higher wages to keep up with the increasing cost of living. The frustration over stagnant wages amidst rising prices fueled tensions between workers and employers. Labor strikes became a common response as workers sought to voice their dissatisfaction and advocate for better working conditions and pay. Notable strikes included the Steel Strike of 1919 and the Boston Police Strike, which highlighted the growing unrest among laborers. This environment of economic instability became fertile ground for labor movements, with many workers feeling that their grievances were inadequately addressed through existing channels. While options related to stability in wages, increased government employment, and the growth of trade unions are relevant to the broader labor context, they do not capture the immediate response to the economic challenges of inflation and unemployment quite as accurately as the widespread strikes that characterized this tumultuous period.