Reaganomics: Economic Policy of the 1980s

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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?

A mixture of growth and wage increases, as well as government debt growth and increased income inequality 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?

Spurred new growth for American businesses and families Signup and view all the answers

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

All of the above 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?

Wages fell quickly Signup and view all the answers

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

All tax percentages of brackets were decreased Signup and view all the answers

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

It continued the simplification and reduction of the tax structure Signup and view all the answers

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

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

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

It was slightly higher by the end of Reagan's administration 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?

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

What was a major criticism of Reaganomics by its opponents?

It increased the deficit and reduced revenues due to tax cuts Signup and view all the answers

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

It hurt farmers by creating crop surpluses Signup and view all the answers

What was the overall effect of Reaganomics on the economy?

It improved the economy and standard of living Signup and view all the answers

Reaganomics: Economic Policy of the 1980s

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