2
QuizMultiple Choice

The Reagan Revolution

Question 2 • EAP-Virginia and US History B CR

Which statement best summarizes how 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 tax increases and the elimination of the national debt.
D
There was overall prosperity, but federal spending and the national debt also increased.

Explanation

The economy grew during much of Reagan’s presidency, and supporters pointed to lower inflation and stronger economic growth as signs of prosperity. However, federal spending—especially on defense—increased, while tax cuts and spending levels contributed to a substantial rise in the national debt. So the best summary is that there was overall prosperity, but federal spending and the national debt also increased.

AI-written and checked against the verified answer.

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