The tax cuts passed during the Reagan administration were designed primarily
A)to make it easier for consumers to spend
B)to shift the aggregate demand curve rightward
C)to reduce the balance-of-payments deficit
D)to increase the supply of productive resources
E)to make filling out tax returns easier for the average taxpayer

Question

Quizplus · Accepted Answer

The tax cuts during the Reagan administration, known as "Reaganomics," were primarily aimed at increasing the supply of productive resources by reducing taxes on businesses and individuals, thereby encouraging investment and economic growth. This approach is often associated with supply-side economics.

The Tax Cuts Passed During the Reagan Administration Were Designed