During President Reagan's first term, the three-year tax cut and negotiated cuts in government spending reduced inflation dramatically and sparked growth in the GDP, but also boosted the federal deficit to record levels.

Question

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Reagan instituted a three-year tax cut to increase disposable income to stimulate consumption and thus economic growth, and, at the same time, he negotiated reductions in government spending.

During President Reagan's First Term, the Three-Year Tax Cut and Negotiated