In what ways were the economies of both the North and the South impacted by the Civil War? Responses Wartime demand stimulated the economies of both regions in the long run. Wartime demand stimulated the economies of both regions in the long run. Inflation set in, increasing consumer costs and eroding savings. Inflation set in, increasing consumer costs and eroding savings. Labour union membership soared due to the demand for workers. Labour union membership soared due to the demand for workers. Each side had placed an embargo on the other, stifling international trade