Economy = the wealth and resources of a country or region, especially in terms of production and consumption of goods.
Canada’s economy was experiencing a period of great prosperity and rapid economic growth (BOOM) • The Canadian government quickly organized factories to help produce war materials such as airplanes, shells, and ships (manufactured goods) • The government also urged Canadian farmers to increase their production the wheat crop of 1915 was the largest EVER
However, because most products and resources were going to help the war effort there were shortages of goods. As a result, prices went up.
To deal with this the government began introducing controls that limited when, what, and how much of certain items Canadians could use • For instance, meatless Mondays, fuel less Sundays, and honour rationing
The war also cost a lot of money (by 1918 $1 million per day); as a result, the Canadian government introduced ways to raise money such as: • Victory Bonds • Thrift Stamps • Income tax originally a temporary measure but still with us today!