The correct answer is D) production decreased during the transition from wartime to peacetime industry.
The statement that explains why the end of World War 1 led to a brief recession in the United States is " production decreased during the transition from wartime to peacetime industry."
What happened was that the fabrics were producing many goods during the war to send them to the war front and it required many workers. But when the war was over, production in fabrics reduced drastically. Furthermore, production became idle. So many workers were left without jobs and the government stopped spending the way the used to during wartime.
