Which statement best summarizes how President Reagan’s economic policies affected the US economy?
A. There was a decline in unemployment, but people made less money and paid higher taxes.
B. There was a significant rise in prosperity triggered by a reduction in federal spending and the national debt.
C. There was an increase in defense spending because of the elimination of the national debt.
D. There was a significant rise in prosperity, but federal spending and the national debt increased.

The economic policies promoted by president Reagan is known as Reaganomics. His policies are also known as supply side economics or voodoo economics, Reagan's political advocates called it free-market economics. The four pillars of his policies were Reduction of federal income tax, Capital gains tax, increasing government spending, reducing regulation and restricting money supply.

The outcomes of his policies are still debated, his supporters point out that the policies led to the end of stagflation, increase in GDP, while critics consider that it led to difference in income gap and tripling of national debt.

avantikar avantikar · Answer 2 · 2019-12-11T12:34:02+01:00

There was overall prosperity, but federal spending and the national debt also increased.(d)

Further Explanations:

Ronald Reagan the 40th President of America was born on 6th February 1911 in a low-income family of northern Illinois and graduated from Eureka College in 1932. He started his early career as a Hollywood actor and a Union leader. He had also served as the California’s 33rd governor. After becoming President he gained the fame of being modern influential Conservatism. One of his tremendous initiatives was the Strategic Defense Initiative, a missile defense system to guard United States from Nuclear attacks and submarines ballistic attack.

Reagan's economic policies were named as the Reaganomics that aimed at the economic policies such as tax deduction, increase in military expenditures and social expense downfall. He believed that the economy of the nation will only increase when the citizens will have enough money. His policies are still the question of debate that it was for the benefit of the nation against the national interest. It increased the difference in income gap as well as at the same time tripled the national debt.

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Answer Details:

Grade: High school

Subject: US History

Chapter: US President

Keywords:

Ronald Reagan, northern Illinois, Eureka College, Union leader, Hollywood actor, California, Conservatism, Strategic Defense Initiative, Nuclear, Reaganomics