Explain the impact of the First World War on the British economy.
Points to Remember
- The war led to an economic boom, a large increase in demand, production and employment
- Britain was burdened with huge foreign debt .
- Production decreased and unemployment rose after the war ended.
- The government reduced bloated war expenditures
Answer to be written in the exam
- At the time of war ,the war had led to an economic boom which means there is a large increase in demand, production, and employment.
- When the war ended ,Britain was burdened with huge foreign debt , and it struggled to regain its former prominence after the First World War.
- When the war ended production decreased and unemployment rose .
- At the same time, the government reduced bloated war expenditures to bring them into line with peacetime revenues.
* This question can also come as Economic condition of Britain after the First World War