1. Increase in the national GDP is least likely to be caused by a war.
2. Oil is considered the most crucial resource in modern warfare.
3. War affects the stock market by causing a decline in stock prices.
What do you guys think? Is this true or false?
1.Generally true. Wars often lead to destruction of infrastructure, disruption of trade, and loss of human capital. While there can be short-term boosts from defense spending, sustained economic growth is unlikely during a prolonged war.
2.This is largely accurate. Oil fuels military vehicles, ships, and aircraft. Disruptions to oil supplies can severely hinder military operations, making it a vital strategic resource.
3.True, but it's a simplification. Wars introduce uncertainty and instability, leading investors to become risk-averse. However, specific industries like defense and oil may see their stocks rise due to increased demand.
Overall, your statements reflect common effects of war on the economy, but it's essential to remember that the economic impact of war is always complex and depends on the specific conflict, its duration, and the nations involved.