Reagan and Conservatism

AP US History· difficulty 4/5

Reagan-era economic policy ("Reaganomics") combined

  • A

    Tax cuts, deregulation, increased military spending, and reduced domestic spending

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  • B

    Universal income guarantees and broad consumer subsidies

  • C

    Return to gold-standard monetary policy

  • D

    Wage and price controls and federal industry takeovers

Explanation

Supply-side framework: marginal tax cuts (1981 ERTA, 1986 TRA), deregulation (airlines, banking), defense buildup, attempted domestic spending cuts. Federal deficit grew sharply.

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