5
QuizMultiple Choice

Reagan and the 1980s

Question 5 • 11011de2 CONNECTED Fall 2026 NM-US History and Geography S2

Which statement best summarizes how President Reagan’s economic policies affected the US economy?

Answer
A
There was a decline in unemployment, but people made less money and paid higher taxes.
B
There was a significant rise in prosperity triggered by a reduction in federal spending and the national debt.
C
There was an increase in defense spending because of the elimination of the national debt.
D
There was a significant rise in prosperity, but federal spending and the national debt increased.

Explanation

Reagan’s policies included tax cuts and increased defense spending, and the economy experienced a period of significant growth and prosperity. However, federal spending exceeded revenue, so the national debt increased rather than declined. Thus, the best summary is that prosperity rose while federal spending and the national debt also increased.

AI-written and checked against the verified answer.

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