13. Supply-side economics, during President Reagan’s administration, involved

Question

13. Supply-side economics, during President Reagan’s administration, involved

a. the supply component of the supply-demand equation.

b. stressing the importance of tax cuts for businesses.

c. stressing the importance of tax cuts for the wealthy.

d. an increase in the size of the national debt.

e. All these answers are correct.

Best answer would be D, correct?

Answer 1

Reduce Growth of Government spending.

1. Reduce Income Tax and Capital Gains Tax.
2. Reduce Government regulation.
3. Control the money supply to reduce inflation.

I would say E now.

What say?

Answer 2

No, the best answer would actually be option E: All these answers are correct. Supply-side economics, also known as Reaganomics, was a set of economic policies implemented during President Reagan's administration. It involved the focus on the supply component of the supply-demand equation, which means that policies were mainly aimed at stimulating production and increasing the supply of goods and services in the economy. This was done through various measures, including tax cuts for both businesses and wealthy individuals, with the belief that lower taxes would incentivize investment, job creation, and economic growth. However, it is important to note that while supply-side economics aimed to stimulate economic growth, it also resulted in an increase in the size of the national debt due to reduced tax revenues. Therefore, option D, which mentions an increase in the size of the national debt, is also correct.