Refer to the table below. | Year | Gross National Product (GNP) (in billions of dollars) | Unemployment Rate (%) | Federal Spending (in billions of dollars) | |---|---|---|---| | 1938 | 85.2 | 19.1% | 6.8 | | 1940 | 100.6 | 14.6% | 9.5 | | 1942 | 159.1 | 4.7% | 34.0 | | 1944 | 210.1 | 1.2% | 91.3 |

Refer to the table below. | Year | Gross National Product (GNP) (in billions of dollars) |… — AP United States History

Refer to the table below.

Year	Gross National Product (GNP) (in billions of dollars)	Unemployment Rate (%)	Federal Spending (in billions of dollars)
1938	85.2	19.1%	6.8
1940	100.6	14.6%	9.5
1942	159.1	4.7%	34.0
1944	210.1	1.2%	91.3

Which of the following historical conclusions is best supported by the data in the table?

Massive federal deficit spending and industrial mobilization during World War II, rather than peacetime New Deal policies alone, ultimately ended the high unemployment of the Great Depression.Answer
B
Peacetime New Deal programs had already fully resolved the unemployment crisis by 1938, leaving the wartime economy to operate with minimal federal intervention.
C
The economic recovery of the early 1940s was primarily driven by a return to laissez-faire capitalism and the reduction of federal regulation over private industry.
D
The rapid increase in industrial production was achieved by maintaining strict economic isolationism and avoiding trade commitments with foreign allies.

Answer

Massive federal deficit spending and industrial mobilization during World War II, rather than peacetime New Deal policies alone, ultimately ended the high unemployment of the Great Depression.

The correct answer is correct because the data illustrates that the high unemployment of the late 1930s (19.1% in 1938) was not resolved by New Deal policies alone. The economic turnaround occurred in tandem with a massive spike in federal spending (from

9.5 billion to

91.3 billion) and industrial mobilization during World War II, which reduced unemployment to 1.2% by 1944.

Step-by-Step Solution

Analyze the economic baseline under late New Deal policies.

In 1938 and 1940, unemployment remained high at 19.1% and 14.6% respectively, showing that the depression was not yet fully resolved.

This establishes that peacetime New Deal initiatives had not fully restored full employment.

Examine the correlation between federal spending and macroeconomic indicators during the war years.

Between 1940 and 1944, federal spending increased nearly tenfold from

9.5 billion to

91.3 billion, coinciding with a drop in unemployment to 1.2% and a doubling of the GNP.

This identifies the primary driver of the sudden and complete economic recovery.

Synthesize the findings to evaluate the historical argument.

Wartime deficit spending and industrial mobilization mobilized the nation's idle workforce and resources on a scale the New Deal never attempted, thus bringing a definitive end to the Great Depression.

This confirms that the data best supports the conclusion that war mobilization, rather than peacetime policies alone, ended the economic crisis.

Key Concept

Wartime Economic Mobilization and the End of the Great Depression

Estimated Time:2m 0s

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