Economic Outcomes of Reagan's Policies

Very Hard Period 9: 1980–present Reagan Era

Throughout the Reagan era, various economic policies were instituted that aimed to address the challenges of the 1970s. This period, often categorized by a mix of conservative social policies and significant economic changes, marked a turning point in American governance. One significant aspect of Reagan's presidency was the emphasis on tax cuts, deregulation, and a strong national defense. Which of the following statements best reflects a major economic outcome of Reagan's policies?

The federal budget saw a consistent surplus, leading to long-term debt reduction.

Inflation rates drastically dropped while the unemployment rate increased significantly.

The policies favored wealth accumulation for the upper classes, contributing to income inequality.

The deregulation of industries resulted in a rapid growth of labor unions and worker protections.

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