Which of the following factors was responsible for the excess production capacity in the U.S. in the first half of the twentieth century?
A) Technological innovation revolutionized production during this time.
B) Many firms from other nations shifted their production facilities to the U.S.
C) Domestic demand was at a historic low, which produced excess capacity.
D) Swelling labor supply of returning military after World War II.
E) Influx of migrant laborers from Europe and Japan.

Question

Quizplus · Accepted Answer

The overseas demand created by the Marshall Plan and other programs was important to the U.S. economy because the vast manufacturing base built to supply World War II and the swelling labor supply of returning military created a production capacity well beyond domestic needs.

Which of the Following Factors Was Responsible for the Excess