Question 2 - Past Year Questions - 3 marks - Chapter 3 Class 10 History - The Making of a Global World - History

Explain the impact of the First World War on the British economy.

Answer:  

Points to Remember 

1. The war led to an economic boom, a large increase in demand, production and employment
2. Britain was burdened with huge foreign debt .
3. Production decreased and unemployment rose after the war ended. 
4. The government reduced bloated war expenditures 

Answer to be written in the exam 

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1. 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.
2. When the war ended ,Britain was burdened with huge foreign debt , and it struggled to regain its former prominence after the First World War. 
3. When the war ended production decreased and unemployment rose .
4. 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

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