Question

Reaganomics was a policy implemented by President Reagan to stimulate the nation's economy. It was based on an economic theory known as supply-side or trickle-down economics. What was the main focus of Reaganomics?

1) Reducing taxes on the wealthy
2) Increasing government spending
3) Implementing strict regulations on businesses
4) Promoting international trade

Answer 1

Reaganomics centered on stimulating the economy by reducing taxes on the wealthy, decreasing government spending on social programs, and deregulating businesses.

Step-by-step explanation:

The main focus of Reaganomics was to stimulate the economy through a supply-side economic approach. This approach included significant policies such as reducing taxes on the wealthy, which was based on the theory that such tax cuts would encourage investment and economic activity, leading to job creation and increased revenues despite lower tax rates. This theory is also known as trickle-down economics. Other aspects of Reaganomics included decreasing government spending, particularly on social programs, while increasing defense spending, as well as promoting the deregulation of businesses.