ECONOMICS (CBSE/UGC NET)

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ECONOMICS

TECHNOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
“Government regulations impose an enormous burden on large and small businesses in America, discourage productivity, and contribute substantially to our current economic woes."-President Ronald Reagan, January 22, 1981What would President Reagan’s economic policy MOST LIKELY be concerning regulations?
A
to propose many new regulations
B
to encourage private regulation of business
C
to cut back on the number of regulations
D
to preserve the existing level of government regulation
Explanation: 

Detailed explanation-1: -The pillars of Reagan’s economic policy included increasing defense spending, balancing the federal budget and slowing the growth of government spending, reducing the federal income tax and capital gains tax, reducing government regulation, and tightening the money supply in order to reduce inflation.

Detailed explanation-2: -The four pillars of the policies were to: Reduce marginal tax rates on income from labor and capital. Reduce regulation. Tighten the money supply to reduce inflation.

Detailed explanation-3: -The US experienced mixed consequences. On the one hand, the real GDP improved by 26% (above 1980 figures), from 13.5%, inflation was brought down to 4.1%, and unemployment dropped from 7.6% to 5.5%. But, on the opposite spectrum, the rich became richer. Tax savings were not used for job creation.

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