Question:
During wartime, countries shift production from civilian goods, like automobiles and clothing, to military goods, like tanks and military uniforms. When the United States entered World War I in April 1917, for example, the federal government created the War Industries Board and charged it with determining production priorities and converting plants to meet war needs. In the following year, automobile production fell 43 percent as output of military vehicles soared. When the war ended, 19 months later, in November 1918, the government cancelled $2.5 billion in military contracts and the nation resumed normal production. Assuming that in 1917 the United States was at point A on the production possibilities curves shown, show what happened between April 1917 and November 1918. Show what happened once the war ended.