Question

After World War II, a shortage of consumer goods like automobiles caused A. a deep recession B. prices to rise C. a government takeover of the automobile industry D. deflation

Answer 1

(B) prices to rise. Everyone wanted luxury goods now that the war was finally over, but the scarcity of things like autos and other goods forced prices to go up. The price controls that the federal government had implemented to keep prices relatively normal during wartime were now lifted as industries shifted gears.

(A) a deep recession didn't follow after WW2, though there was a small one a few years later but not the kind that could be called 'deep' or 'severe'. (C) doesn't work either as the government did not take over the auto industry after the war. Things went back to normal and a lot of work to turn auto plants that churned out tanks and planes back into car making factories was needed after the war. And because there was a shortage of goodies like automobiles spurring productivity throughout the US to fill post-war shelves and show rooms with what people had missed out on, (D) deflation wasn't a factor.

Answer 2

B

Answer 3

thank you