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How did demobilization affect the U.S. economy?


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Final answer:

Demobilization post-World War II had a significant impact on the U.S. economy, affecting military orders, workers, and factory owners.


Explanation:

Demobilization refers to the process of scaling down military forces and returning to civilian production after a war. In the case of the U.S. post-World War II, demobilization led to cancellation of military orders for goods, causing concerns among workers and factory owners. This sudden shift impacted the economy as the country transitioned from a wartime economy based on defense spending to one focused on peacetime production.


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