Reaganomics: Economic Policy of the 1980s
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Questions and Answers

What were the major economic challenges faced by the United States during President Jimmy Carter's administration?

  • High unemployment and inflation
  • Low-interest rates and low unemployment
  • Oil crisis, high-interest rates, and high unemployment (correct)
  • Deflation and economic growth
  • What was the primary aim of Reagan's Economic Recovery Tax Act in 1981?

  • To lower tax brackets and deregulate industries (correct)
  • To implement a new type of economic policy
  • To increase government revenue
  • To reduce government debt
  • What were the three main difficulties that the Carter administration faced, which changed rapidly during the Reagan years?

  • Unemployment, inflation, and oil access
  • Monetary policy, international businesses, and energy conservation
  • GDP growth, working-class wages, and tax regulations
  • Oil access and pricing, unemployment, and interest rates (correct)
  • What was the outcome of Reagan's economic policies in the mid-1980s?

    <p>A mixture of growth and wage increases, as well as government debt growth and increased income inequality</p> Signup and view all the answers

    What was the result of the reduction in taxes and promotion of free-market activity according to Reagan's economic plan?

    <p>Spurred new growth for American businesses and families</p> Signup and view all the answers

    What was the alternative term used by critics to describe Reagan's economic policies?

    <p>All of the above</p> Signup and view all the answers

    What was the effect of de-unionization and value loss due to inflation on working-class wages in the 1970s?

    <p>Wages fell quickly</p> Signup and view all the answers

    What was the result of the passage of the Economic Recovery Tax Act in 1981?

    <p>All tax percentages of brackets were decreased</p> Signup and view all the answers

    What was the significance of the Tax Reform Act of 1986 in the context of Reaganomics?

    <p>It continued the simplification and reduction of the tax structure</p> Signup and view all the answers

    What was the ultimate result of the tax reforms implemented during the Reagan administration?

    <p>The top tax bracket was cut from 70% to 28%</p> Signup and view all the answers

    What happened to the percentage of those in poverty from 1980 to 1988?

    <p>It was slightly higher by the end of Reagan's administration</p> Signup and view all the answers

    What was the effect of the Reagan administration's slashing of the Small Business Administration's business loan programs?

    <p>It resulted in a 32% reduction in loans to small businesses</p> Signup and view all the answers

    What was a major criticism of Reaganomics by its opponents?

    <p>It increased the deficit and reduced revenues due to tax cuts</p> Signup and view all the answers

    What was the effect of the Payment-in-Kind program on farmers?

    <p>It hurt farmers by creating crop surpluses</p> Signup and view all the answers

    What was the overall effect of Reaganomics on the economy?

    <p>It improved the economy and standard of living</p> Signup and view all the answers

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