Question

impact of first world war on Britain's economy​

Answer 1

Explanation:

Britain was burdened with huge external debts. (iv) The war had led to an economic boom, i.e., to a large increase in demand, production, prices and employment. When the war boom ended production contracted, employment and unemployment increased.

Answer 2

Explanation:

1.Britain spent between 15-25% of it's accumulated wealth fighting the first world war.

2.It borrrowed very heavily, especially from the United States, and was lumbered with massive debts after the conflict.

3.During the war Britain could not produce goods to sell to foreign markets, after the war, Britain found that many of it's previous buyers had set up their own industries and no longer needed to buy from Britain.

4.Important industries like coal mining failed to modernize during the war.

5.During the war, British farmers had been encouraged to grow more crops. After the war, the farmers had excess stock due to which prices declined. Farmers, therefore, suffered.