What happened to the American economy in the mid-1920s? The postwar recession ended. Unemployment increased. It sank further into recession. Unemployment disappeared completely.

The postwar recession ended is the correct answer.

Explanation:

The decade of 1920s are also called the roaring twenties in US. It was a period economic growth, booming stock market, prosperity and cultural change. Due to economic growth people were could spend more on consumer goods and entertainment. Women were also empowered after gaining the right to vote in 1919 and due to advancement in industry people could purchase automobiles at low prices. Most of the people considered this period as best time in American history, which would never end but when due to the booming economy people started buying goods on credit, it led to the growth of national debt. The stock values were also getting higher and people thought it would stay up forever and it crashed on October 29th 1929. It was called Black Tuesday and was the signal of beginning of Great Depression. The crash of stock marked the end of postwar boom.

The postwar recession ended.

Explanation:

The recession was a global economic decrease that brought a significant effect on the financial markets and other banking sectors. The crisis also contributed significantly towards the rise of home mortgage foreclosure across the world, and because of this, billions of people lost the wealth and savings of their homes and jobs.

Because of this, it was considered the most challenging period of decline in the economy since the occurrence of the great depression. Therefore the recession was announced in America that was its place of origin because of the effects that it had cause to the mortgages.