What characterised the immediate economic situation in Canada after World War I?

• A. Stock Market Crash
• B. Post War Slump
• C. Golden Age of Radio
• D. Relief Camps

Answer: (B)

The immediate economic situation in Canada after World War I was predominantly characterized by a post-war slump. Following the end of the war in 1918, the Canadian economy, which had initially thrived due to wartime production and exports, faced significant challenges. Industries that had expanded rapidly to support the war effort encountered a drastic reduction in demand as military contracts ended. This led to factory closures, rising unemployment, and a general economic downturn known as the post-war slump.

During this period, many returning soldiers struggled to reintegrate into the workforce, and inflation, combined with a lack of consumer confidence, further hampered economic recovery. The transition from a wartime to a peacetime economy proved difficult, as industries had to shift their focus and many workers found themselves without jobs. The effects of this economic instability would persist through the early 1920s until the situation began to improve.

The other options, while relevant to different aspects of Canadian history, do not accurately reflect the immediate economic reality following World War I. The stock market crash occurred much later in the 1920s, the golden age of radio refers to a cultural phenomenon in the late 1920s and beyond, and relief camps were a response to the Great Depression, not