Asked by Jesus Gonzalez Jauregui on May 12, 2024
Verified
The Reagan administration's 1981 personal income tax changes were designed to:
A) stimulate aggregate demand and reduce unemployment.
B) stimulate aggregate demand and increase economic growth.
C) stimulate aggregate supply and increase economic growth.
D) decrease aggregate demand in order to reduce inflation.
E) increase tax revenues to reduce the federal budget deficit.
Aggregate Supply
represents the total supply of goods and services that firms in an economy are willing and able to produce at a given overall price level and in a given time period.
Reagan Administration
The executive branch under President Ronald Reagan, which governed the United States from 1981 to 1989, noted for economic policies favoring tax cuts and deregulation.
Personal Income Tax
A tax that governments impose on individuals directly based on their income, including wages, salaries, and investment earnings.
- Determine the strategies from the supply-side perspective and their goals in promoting economic expansion.
- Analyze the effect of governmental fiscal policies on economic performance, including taxation and spending measures.
- Distinguish between the mechanisms of Keynesian economics and supply-side economics in addressing economic issues.
Verified Answer
Learning Objectives
- Determine the strategies from the supply-side perspective and their goals in promoting economic expansion.
- Analyze the effect of governmental fiscal policies on economic performance, including taxation and spending measures.
- Distinguish between the mechanisms of Keynesian economics and supply-side economics in addressing economic issues.
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