Explanation:
America's involvement in World War II had a significant impact on the economy and workforce of the United States. American factories were retooled to produce goods to support the war effort and almost overnight the unemployment rate dropped to around 10%.
Answer:
It cannot respond to an adverse shock to the economy by lowering interest rates. One option is to increase inflation by purchasing bonds to stimulate the economy.
Europe split into Allied and Central powers as countries honored alliances to fight together if attacked.
In the first years of the 1900, power balance between the nation was carefully measured with alliance and influence, so it was only a matter of time that something would ignite this tableau, as the alliance system was a perfect instrument for calling every nation to help the other, thus putting all the europe in state of war almost overnight.
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Explanation: On April 22, 1793, President George Washington issued a Neutrality Proclamation to define the policy of the United States in response to the spreading war in Europe. “The duty and interest of the United States require,” the Proclamation stated, “that they [the United States] should with sincerity and good faith adopt and pursue a conduct friendly and impartial toward the belligerent Powers.” The Proclamation warned Americans that the federal government would prosecute any violations of this policy by its citizens, and would not protect them should they be tried by a belligerent nation. This statement of policy triggered a fierce reaction from those who considered it a sellout of the nation’s revolutionary soul for the financial gain of the merchant class. “The cause of France is the cause of man, and neutrality is desertion,” one anonymous correspondent wrote the president. Critics believed that the Proclamation marked a dishonorable betrayal of our oldest and dearest ally and to a sacred alliance made in the darkest hours of the American Revolution. The Proclamation was important for the constitutional precedent it established in the exertion of executive authority in the realm of foreign policy, as well as for exciting partisan passions that were formative to the creation of political parties in the first party system.
Several important recent developments in both American and Europe led to Washington’s Neutrality Proclamation. The French Revolution turned more radical when it beheaded King Louis XVI in January 1793. Ten days later, revolutionary France, already fighting Austria and Prussia, declared war on England, Holland, and Spain, embroiling the entire European continent in conflict. Lastly, on April 8, 1793 the new French minister, Edmond Genet, arrived in Charleston, South Carolina. Genet was an instant hit with the American people who flocked in large numbers to greet the ebullient Frenchmen as he made his way north to the capital in Philadelphia. More ominous, however, was the fact that Genet, armed with commissions and letters of marque from his government, actively recruited Americans to fight for revolutionary France.
