How did wwII affect the U.S. economy?

Question

It obviously increased the aggregate demand, but more than full employment? And how did it alter the economy after the war? We need to do an ad/as graph of before, during, and after, so any help would be appreciated.

Answer 1

Before: AD and AS intersect to the left of LRAS

During: AD and AS shifted past full employment (women who had not previously worked got jobs in factories)

After: AD shifted left, but not as far as before.  Most of the women who had worked were forced out of their jobs, and the government passed the GI BIll to reduce the size of the labor force until the economy had time to recover.

Answer 2

After World War 2 the U.S had over 50 % of worlds gold, so this led the U.S dollar to become the worlds only reserve currency.

Answer 3

well, the wartime production increased.  this put lots of people on payrolls including women (i.e. Rosie the Riveter) who weren't traditionally employed at that time.

Of couse, young men were being drafted and many volunteered for service.   But, there were rations etc. instituted at that time for consumer goods.

I doubt demand exceeded full employment.

After the war, there was a recession. Women returned to home and returning service men had to get employment. The GI Bill though allowed returning servicemen to go to college on the government dime resulting in improved future employment.  Another factor to consider is the casualties in WW2 resulted in a reduction in population of the WW2 era generation.  After the war, production converted from defense production to consumer goods.  

Our country had a lot of debt from the war as well.  and, the marshall plan caused spending in the defeated nations.

The retooling to consumer goods etc. probably didn't cause a result to occur until the middle of the Korean War and throughout the 50s.