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QuizMultiple Choice

The Reagan Revolution

Question 1 • EAP-Virginia and US History B CR

The economic situation at the beginning of Ronald Reagan’s first term in which unemployment and inflation were both high was referred to as

Answer
A
Reaganomics.
B
trickle-down economics.
C
the Strategic Initiative.
D
stagflation.

Explanation

When high unemployment occurs at the same time as high inflation, the economic condition is called stagflation. The term combines “stagnation” and “inflation.” Reaganomics and trickle-down economics refer to economic policies, while the Strategic Initiative was a defense program, so the correct choice is stagflation.

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