Final answer:
President Ronald Reagan's economic plan, known as Reaganomics, entailed significant tax cuts and deregulation of industries, with the intent to spur economic growth and job creation through private sector investment.
Step-by-step explanation:
President Ronald Reagan's economic plan, commonly referred to as Reaganomics, focused on reducing the tax burden on individuals, particularly the wealthy, and easing the regulatory environment for businesses. His plan was built on supply-side economic theory with the anticipation that these changes would stimulate investment, create jobs, and lead to overall economic growth. Therefore, Option 1: Tax cuts and deregulation is the correct answer.
Reagan's economic strategy included significant tax cuts for those at the top of the economic ladder in hopes that they would invest their surplus money into businesses, consequently creating more jobs. Alongside tax reduction, Reagan aimed to deregulate industry and cut federal spending on social programs, although his administration significantly increased defense spending. Reaganomics was predicated on the belief that decreasing government intervention and promoting private sector growth would resultantly 'trickle down' to benefit the broader economy.