Question

Which of the following best describes the state of the US economy in 1939?
The US economy was in a boom.
The US economy was in a depression.
The US economy had low unemployment.
The US economy had strong business growth.

Answer 1

The US economy was in a depression.

Although it had improved from the early-1930s lows, unemployment in 1939 remained high (roughly mid-to-high teens percent) and overall output had not returned to full recovery—complete recovery came with the wartime buildup in the early 1940s.