Question

Which is true regarding the following statements.

When there is a war production decreases.
When there is war production increases.
When there is peace production decreases.
When there is peace production does not change.

Answer 1

When there is war production increases to meet the demands of the war

Answer 2

Both first and second options are true. If the was doesn't affect the factors of production of a country, that country may increase its production to develop a war economy that allows it to maintain the conflict economically stable, increasing the production to bring more supplies to the forces in combat. But, if the factors of production are affected by the war (for example, industries are bombed), then the production will decrease.