USA HISTORY

Detailed explanation-1: -Reaganomics was influenced by the trickle-down theory and supply-side economics. Under President Reagan’s administration, marginal tax rates decreased, tax revenues increased, inflation decreased, and the unemployment rate fell.

Detailed explanation-2: -Milton Friedman stated, “Reaganomics had four simple principles: Lower marginal tax rates, less regulation, restrained government spending, noninflationary monetary policy. Though Reagan did not achieve all of his goals, he made good progress."

Detailed explanation-3: -It reduced personal income tax rates in three annual installments of 5, 10, and 10 percent; lowered the highest marginal tax rate on top earners from 70 to 50 percent; and cut corporate taxes.