Reagan and Conservatism

AP US History· difficulty 3/5

"Reaganomics" (supply-side economics) emphasized

  • A

    Higher income and corporate tax rates combined with new regulations on banking, energy, and manufacturing industries

  • B

    Tax cuts (especially for high earners), deregulation, and reduced government spending — believed to spur economic growth

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  • C

    Strict trade restrictions and high tariffs on foreign goods to protect domestic industry and rebuild American manufacturing

  • D

    Wealth redistribution through steeply progressive income taxes and expanded federal welfare programs to reduce inequality

Explanation

Critics called it "trickle-down economics"; it produced economic growth and large deficits.

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