Question

Which explains the effect of demobilization following WWI on the economy?

Answer 1

Answer: Among the options given on the question the correct answer is option b.

The demand for war materials lessened, which weakened the global economy

Explanation: After the World War I the global economy has experienced a demobilization which means a depression on the economy. After war had stopped the demand for war materials and arms was lessened. As a result thousands of war materials factories were closed down since the countries had cancelled the order. So thousands of workers lost their job and found themselves unemployed.

So this factors had a negative impact on the global economy.