Question

Which of the following items characterize the wartime boom? Select all that apply.

Answer 1

Answer:

high stock prices

government purchase of manufactured goods

Explanation:

Wartime boom refers to the economic expansion that tends to occurred after the depression that occurred during the war.

During the war, investors tend to sell away their stokes in fear that the country might lose the war and experience economic damage because of it. As a result, the stock price will decrease. But after the war, confidence in market will started to increase and resulted in high stock price.

During this time, government also purchase a lot of manufacturing goods since a lot of factories tend to be turned as producer of war-related items. The government wanted to replace the production that was halted because of the war.