Which economic policy is associated with supply-side economics and tax rate cuts to spur growth?

• A. Reaganomics
• B. NRA
• C. Contract with America
• D. Ronald Reagan

Answer: (A)

Lowering taxes and deregulating the economy to spur growth is a classic example of supply-side economics. The policy name most closely tied to this approach is Reaganomics, the set of economic measures pursued in the 1980s under President Ronald Reagan. The idea was that reducing tax rates would increase incentives for work, saving, and investment, leading to more production, more jobs, and eventually higher tax revenue from a bigger economy. Alongside tax cuts, the program pushed deregulation to reduce barriers for businesses, aiming to unlock growth from the supply side of the economy.

Other options aren’t the policy name associated with this approach: the NRA was a New Deal era agency aimed at coordinating industry and wages; the Contract with America was a 1994 congressional reform agenda; Ronald Reagan is the president who implemented Reaganomics, not the policy itself.