Question

question 1-16
what was one economic consequence of demobilization in the united states after world war i?
demobilization caused a rise in unemployment as soldiers returned home.
demobilization resulted in higher wages for factory workers.
demobilization increased demand for military equipment.
demobilization led to a shortage of consumer goods.

Explanation:

To determine the economic consequence of demobilization after WWI in the US:

• Analyze Option 1: When soldiers returned home after demobilization, they entered the labor market, increasing the labor supply. This led to a rise in unemployment as jobs were limited, which aligns with historical economic outcomes.
• Analyze Option 2: Demobilization shifted production from military to civilian, but it didn't necessarily lead to higher wages for factory workers; in fact, labor surplus could pressure wages down.
• Analyze Option 3: Demobilization means reducing military activities, so demand for military equipment would decrease, not increase.
• Analyze Option 4: Demobilization and post - war production shifts (to civilian goods) would likely increase the supply of consumer goods, not cause a shortage.

Answer:

A. Demobilization caused a rise in unemployment as soldiers returned home.