What was one major impact of World War I on the Canadian economy?

What was one major impact of World War I on the Canadian economy?

• A. Increased industry growth
• B. Decreased agricultural production
• C. Lower unemployment rates
• D. Reduced foreign trade

Answer: (A)

The major impact of World War I on the Canadian economy was increased industry growth. During the war, Canada experienced a significant shift as the demand for war supplies led to a boom in manufacturing and production. Industries expanded rapidly to meet the needs of both the Canadian military and Allied forces. This included the production of munitions, weapons, and other goods necessary for the war effort. As factories and industries grew, there was a need for more workers, which contributed to a decrease in unemployment rates. The war also stimulated technological advancements and encouraged the growth of new industries. Consequently, the economic landscape of Canada transformed, laying the groundwork for future industrialization in the post-war period. The other options relate to impacts that did not accurately characterize the broader economic trends during and following the war. Agricultural production didn't significantly decline overall; instead, it adapted to meet different demands. While there were temporary fluctuations, lower unemployment rates were more of a result of increased industrial activity rather than a stand-alone impact, and reduced foreign trade occurred mainly in specific areas due to wartime focus rather than as a widespread economic effect.

The major impact of World War I on the Canadian economy was increased industry growth. During the war, Canada experienced a significant shift as the demand for war supplies led to a boom in manufacturing and production. Industries expanded rapidly to meet the needs of both the Canadian military and Allied forces. This included the production of munitions, weapons, and other goods necessary for the war effort.

As factories and industries grew, there was a need for more workers, which contributed to a decrease in unemployment rates. The war also stimulated technological advancements and encouraged the growth of new industries. Consequently, the economic landscape of Canada transformed, laying the groundwork for future industrialization in the post-war period.

The other options relate to impacts that did not accurately characterize the broader economic trends during and following the war. Agricultural production didn't significantly decline overall; instead, it adapted to meet different demands. While there were temporary fluctuations, lower unemployment rates were more of a result of increased industrial activity rather than a stand-alone impact, and reduced foreign trade occurred mainly in specific areas due to wartime focus rather than as a widespread economic effect.