What factor was primarily responsible for the excess in production capacity in the United States after World War II?
A) The United States government raised the tariffs on most imports by 60%.
B) Many firms from other nations shifted their production facilities to the United States.
C) Domestic demand was at a historic low and resulted in excess capacity.
D) The returning military after World War II increased the labor supply in the United States.
E) The implementation of the Marshall Plan dampened the overseas demand.

Question

Quizplus · Accepted Answer

The returning military personnel after World War II significantly increased the labor supply in the United States, contributing to the country's ability to ramp up production across various industries. This surge in labor, combined with advancements in technology and manufacturing techniques developed during the war, led to a period of excess production capacity as industries expanded and the economy adjusted to peacetime conditions.

What Factor Was Primarily Responsible for the Excess in Production