The Reagan tax cut of 1981 was an attempt to:
A)stimulate aggregate supply.
B)stimulate aggregate demand.
C)stabilize the value of the U.S.dollar.
D)increase demand for U.S.exports.
E)reduce the federal budget deficit.

Question

Quizplus · Accepted Answer

The Reagan tax cut of 1981, part of the economic policy known as "Reaganomics," was primarily aimed at stimulating aggregate supply by reducing the marginal tax rates on income from both labor and capital. This approach was based on supply-side economics, which posits that lower taxes can lead to increased investment, production, and economic growth.

The Reagan Tax Cut of 1981 Was an Attempt To