The standard "a war gives the economy a boost" argument goes as follows: Suppose the economy is on the low end of the business cycle, so we're in a recession or just a period of low economic growth.
When the unemployment rate is high, people may make fewer purchases than they did a year or two ago, and the overall output is flat. But then the country decides to prepare for war. The government needs to equip its soldiers with extra gear and munitions. Corporations win contracts to supply boots, bombs, and vehicles to the army.
Many of these companies will have to hire extra workers to meet increased production. If the war preparations are substantial enough, large numbers of workers will be hired, reducing the unemployment rate. Other workers might be hired to cover reservists in private-sector jobs who get sent overseas. With the unemployment rate down, more people are spending again and people who had jobs before will be less worried about losing their jobs, so they'll spend more than they did.
This extra spending will help the retail sector, which will need to hire extra employees, causing unemployment to drop even further.
So a spiral of positive economic activity is created by the government preparing for war.
So yeah The Answer is: True
