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

Question

History

Israel Hobbs

14 September, 06:18

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

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Molly Hodge · Answer 1

There was a significant rise in prosperity, but federal spending and the national debt increased.

Explanation:

President Ronald Regan's government launched a pro-market plan called reganomics that consisted of lowering taxes and public spending, controlling inflation and reducing regulation of the economy. The plan was successful during the Regan administration the US economy experienced a major improvement in economic indicators such as unemployment rate, inflation and GDP. Although Reagan reduced domestic spending, this measure was somewhat corrupted by increased military spending, creating a net deficit throughout his two terms.