4
QuizMultiple Choice

Reagan and the 1980s

Question 4 • RMA FL-2100310-United States History Semester 2

According to President Reagan’s model for supply-side economics, the first step to triggering a cycle of growth was

Answer
A
reducing taxes.
B
raising taxes.
C
regulating businesses.
D
creating government programs.

Explanation

Reagan’s supply-side approach began by reducing taxes, especially on individuals and businesses. The idea was that lower taxes would encourage people to work, save, invest, and produce more, helping the economy grow. The correct choice is reducing taxes.

AI-written and checked against the verified answer.

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