Which factor most directly produced the economic surge shown?
- Acheck_circle
Massive federal deficit spending on war production, financed largely by war bonds and taxation.
- B
Expansion of consumer spending after rationing was lifted in 1942.
- C
Mass immigration providing labor for new factories.
- D
A return to balanced budgets by Congress.
Explanation
Federal spending soared from about 90 billion (1945), funded by the Revenue Act of 1942 (broad income tax) and bond drives. The War Production Board redirected industry, doubling real GDP and ending Depression-era unemployment.