The supply of goods then would increase driving down

This preview shows page 2 - 4 out of 4 pages.

could invest the money in resources to improve productivity. The supply of goods then would increase, driving down prices. In 1981, Reagan asked Congress to pass a 25% tax cut over 3 years to stimulate spending, increase production and lower prices. By 1983, “Reaganomics” worked, stagflation ended and the economy boomed. The US gained 16 million new jobs, unemployment fell below 6% and inflation declined to 4%. In addition to downsizing the government and creating tax cuts, Reagan increased defense spending in order to restore America’s place in the world. But, because military spending increased but tax revenue decreased, the government experienced massive deficits due to “Reaganomics”.14. Wat was the biggest crisis facing America when Reagan entered office?stagflation (stale economy and high inflation) in the economy15. What is supply side economics?The theory of If people paid fewer taxes, they would savemore money. Banks could then loan that money to businesses, which could invest the money in resources to improve productivity. The supply of goods then would increase, driving down prices16. List 3 reasons why Reagan asked Congress to pass a tax cut over 3 years. a. stimulate spendingb. , increase productionc. lower prices
17. Why did Reagan increase defense spending?in order to restore America’s place in the worldThe Election of 1984Reagan was popular among voters bythe election of 1984. Ronald Reagan18. Who was Geraldine Ferraro?She was America’s first woman on a major party’s presidential ticket
and VP George Bush ran against Walter Mondale and VP Geraldine Ferraro. She was America’s first woman on a major party’s presidential ticket. Reagan’s victory in 1984 was powered by a “conservative coalition” of voters, including business people (wanted to deregulate the economy), Southerners (welcomed the limits on federal power), Westerners (resented federal controls on mining and grazing) and “Reagan Democrats” (agreed with Reagan on limiting federal government and thought that the Democratic Party had drifted too far to the left). Reagan won the election of 1984. 19. List why each group of the conservative coalition voted for Reagan.
The Iran-Contra AffairReagan was committed to fighting communism andmaintaining order in Latin America. In 1979, acommunist group called the Sandinistascame topower in Nicaragua. Congress denied Reagan’s plea(request) to help Nicaraguan counter-revolutionaries called the Contrastake back power.The Reagan administration developed a plan to solve both the problem in Iran and in Nicaragua. In 1983, terrorist groups loyal to Iran took 6 American hostages in Lebanon. Reagan’s response was to “not negotiate with terrorists”. Secretly, the US government illegally sold

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture