Question

question 1 of 10

which statement best completes the graphic organizer to describe president reagans economic policy, known as reaganomics?

reaganomics
?
tax cuts will lead to investment, innovation, and new jobs.
the government should have a balanced budget.

a. the government shouldnt interfere with the poor.
b. the government shouldnt interfere with foreign entities.
c. the government shouldnt interfere with businesses.
d. the government shouldnt interfere with the free market.

Explanation:

Identify the core question

The question asks which statement best completes the graphic organizer describing President Ronald Reagan's economic policy, known as Reaganomics.

Analyze the graphic organizer

The graphic organizer lists key pillars of Reaganomics:

1. "?" (The missing statement)
2. "Tax cuts will lead to investment, innovation, and new jobs."
3. "The government should have a balanced budget."

Evaluate the core pillars of Reaganomics

Reaganomics, or supply-side economics, is famously built on four main pillars:

1. Reduce government spending growth.
2. Reduce federal income tax and capital gains tax.
3. Reduce government regulation (deregulation of the free market and businesses).
4. Tighten the money supply to reduce inflation.

Compare options with Reaganomics principles

• Option A ("The government shouldn't interfere with the poor"): This is not a defined economic principle of Reaganomics.
• Option B ("The government shouldn't interfere with foreign entities"): Reagan's foreign policy was highly interventionist, particularly against communist regimes, so this is incorrect.
• Option C ("The government shouldn't interfere with businesses"): While deregulation did reduce business interference, the broader and more standard economic term for Reagan's laissez-faire approach is letting the free market operate with minimal government intervention.
• Option D ("The government shouldn't interfere with the free market"): This directly represents the core conservative economic philosophy of laissez-faire and deregulation that defines Reaganomics. Reducing government intervention in the free market allows supply and demand to dictate economic growth.

Select the best fit

Option D is the most comprehensive and standard description of the deregulation/laissez-faire pillar of Reaganomics.

Answer:

• A. The government shouldn't interfere with the poor.
• B. The government shouldn't interfere with foreign entities.
• C. The government shouldn't interfere with businesses.
• D. The government shouldn't interfere with the free market. (Correct answer)