The tax cuts of the first Reagan administration were intended to stimulate aggregate supply, rather than to stimulate aggregate demand.

Question

Quizplus · Accepted Answer

The tax cuts were intended to provide incentives for businesses to invest and produce more, thereby increasing aggregate supply. Reagan's economic theory was based on supply-side economics, which emphasizes the importance of lowering taxes and reducing regulations to spur economic growth.

The Tax Cuts of the First Reagan Administration Were Intended