Interpreting the Inverse Supply Function

A historian argues that the post-war economic gap between East and West Germany was a continuation of pre-existing inequalities, claiming the West was already far more industrialized before the division. Based on the economic situation in the 1930s, which of the following best evaluates this argument?

The significant economic divergence between East and West Germany after World War II is best explained by the fact that the regions constituting West Germany were already far more industrialized and had substantially higher living standards than the regions of East Germany prior to the division.

The significant economic divergence between East and West Germany after World War II is best explained by the fact that the regions constituting West Germany were already far more industrialized and had substantially higher living standards than the regions of East Germany prior to the division.

The Foundation of a Natural Experiment

Match each piece of historical evidence from pre-WWII Germany to the specific conclusion it supports regarding the comparability of the regions that would later become East and West Germany.

Validating a Natural Experiment

An economic historian studying Germany in the 1930s discovers that the regions of Saxony and Thuringia were global leaders in industries like optics, chemicals, and automobiles. Given that these regions later became part of East Germany, how does this finding impact the understanding of the two regions' economic conditions before their post-war division?

Justifying the German Natural Experiment

Evaluating Historical Evidence