Consequences of Reaganomics

Hard Period 9: 1980–present Reagan Era

During the Reagan era, several significant political, economic, and social changes occurred that shaped modern American policies. One of the key components of Reagan's presidency was the implementation of supply-side economics, notably nicknamed "Reaganomics." This set of economic policies aimed to reduce taxes, decrease regulation, and stimulate production. Understanding these policies is essential in analyzing their impact on the national economy and society at large. Which of the following best describes a major consequence of Reagan's economic policies during his presidency?

A significant reduction in the federal budget deficit, leading to a balanced federal budget.

A substantial increase in the wealth gap between the richest and poorest Americans.

A rapid decline in the U.S. manufacturing sector due to increased competition from foreign markets.

A long-term increase in unemployment rates across various industrial sectors.

Hint

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