What did President Ronald Reagan and Congress do in 1981 to increase aggregate supply?
A) increase federal spending increased on wars in and social programs at home
B) impose ceilings on prices and wages to combat inflation
C) stabilize the value of the U.S. dollar
D) cut personal income tax rates by an average of 23 percent
E) raise personal income tax rates by an average of 23 percent

Question

Quizplus · Accepted Answer

President Ronald Reagan and Congress cut personal income tax rates by an average of 23 percent in 1981 to increase aggregate supply. This policy was aimed at providing individuals and businesses with more after-tax income to encourage consumption and investment, which would in turn stimulate economic growth and lead to an increase in aggregate supply.

What Did President Ronald Reagan and Congress Do in 1981