🎓 CLEP Exam Prep

The 'Reaganomics' economic policies of the 1980s were primarily based on the theory of:

A Keynesian economics, advocating for government intervention to stimulate demand.
B Supply-side economics, emphasizing tax cuts and deregulation to boost production.
C Mercantilism, promoting government control over trade and industry.
D Socialism, advocating for collective ownership of the means of production.

✓ Correct Answer: Option B

Reaganomics, or supply-side economics, advocated for reducing taxes on corporations and the wealthy, along with deregulation, believing this would stimulate investment, production, and economic growth.

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