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Q.

When wheat supply was disrupted during the First World War, wheat production in Canada, America and ____ expanded dramatically.


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Detailed Solution

When wheat supply was disrupted during the First World War, wheat production in Canada, America and Australia expanded dramatically.
Before the war, Eastern Europe was a major source of wheat in the global market. When this supply was disrupted during the war, wheat production increased in Canada, the United States, and Australia. Farmers increased their output in response to the high demand and prices, with many taking out mortgages to acquire their neighbours' farms. This caused a significant excess in the 1920s. However, after the war, production in Eastern Europe resumed, resulting in wheat overproduction. Grain prices fell, rural incomes fell, and farmers became further in debt.
 
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