Supply-side measures pushed through Congress by the Reagan administration include
A) proposals to decrease the money supply.
B) changes limiting the protection afforded by our patent laws.
C) a 25 percent cut in the personal income tax and accelerated depreciation of plant and equipment.
D) "comparable worth" laws to ensure equal pay.
E) laws limiting the rate of interest that may be charged on loans for investment purposes.

Question

Quizplus · Accepted Answer

The 25 percent cut in the personal income tax and accelerated depreciation of plant and equipment were key supply-side measures pushed through Congress by the Reagan administration. Choice A is incorrect because decreasing the money supply is more of a monetary policy measure than a supply-side measure. Choice B is incorrect because limiting patent protection would not necessarily stimulate economic growth. Choice D is incorrect because comparable worth laws are more focused on addressing income inequality than boosting economic growth. Choice E is incorrect because limiting interest rates on investment loans could actually deter investment and growth.

Supply-Side Measures Pushed Through Congress by the Reagan Administration Include