The tax cuts passed during the Reagan administration were designed primarily to:
A)boost savings among consumers.
B)shift the aggregate demand curve rightward.
C)reduce the balance-of-payments deficit.
D)increase the supply of productive resources.
E)increase the tax base and include more tax payers.

Question

Quizplus · Accepted Answer

The Reagan administration's tax cuts were primarily aimed at increasing the supply of productive resources by incentivizing investment and economic growth, a concept known as supply-side economics.

The Tax Cuts Passed During the Reagan Administration Were Designed