Question

In the United States during World War II
A. unemployment declined, production soared, and income taxes increased.
B. the economy grew only slightly.
C. income taxes increased only for the wealthy.
D. little was done to regulate the economy.
E. the actual size of the federal government shrank as the New Deal ended.

Answer 1

Answer: The correct answer is A: unemployment declined, production soared and income taxes increased.

Explanation:

The expansion of employment, by the hand of the expansion of industrial production caused that in 1944, unemployment dropped to a record low in American economic history.

Beginning in 1940, the government extended the income tax to virtually all Americans and began collecting the tax via continuous withholdings from paychecks. Thus, the number of Americans required to pay federal taxes rose and the tax was collected more efficiently.