Question

21 this graph shows trends in u.s. economic indicators between 1918 and 1921.
index of u.s. economic indicators, 1918 - 1921
source: social security administration
which statement describes u.s. economic trends immediately after world war i ended in 1918?
a the economy entered a period of instability.
b the economy expanded as returning soldiers joined the workforce.
c consumers paid lower prices for everyday goods.
d consumer demand for goods led to a growth in manufacturing.

Explanation:

To solve this, we analyze the graph and each option:

• Option A: The graph shows the cost of living (dashed line) rising then falling, and manufacturing production (solid line) having fluctuations (dropping after 1920). This instability (fluctuations in key economic indicators) matches.
• Option B: Manufacturing production drops significantly after 1920, so the economy did not expand steadily.
• Option C: The cost of living (a measure of prices) rises (dashed line goes up to ~130), so consumers did not pay lower prices.
• Option D: Manufacturing production drops after 1920, so there’s no growth in manufacturing driven by consumer demand.

Answer:

A. The economy entered a period of instability.