Question

According to Reagan’s model for supply-side economics, how would average Americans be affected? Tax increases for business owners would reduce the income of the wealthy, so the average person would have more. Tax cuts would mean that businesses would become more efficient and workers would lose their jobs. Tax increases would mean that businesses would have less wealth and would produce less for consumers. Tax cuts would stimulate business growth, which would grow the economy and benefit everyone.

Answer 1

Answer:

D

Explanation:

Answer 2

Supply-side economics was launched by President Ronald Regan.

• After a short period of time, the name changed to "Reaganomics". And it is also famous by the name of trickle-down economics. The vital responsibility of supply-side economics is to explain the important parts of the macroeconomic event in the economy and introduce laws to stabilize the growth of the economy.
• It has affected the Americans by increasing taxes for the owners of the business which results in a decrease in the income of wealthy citizens and allows profit to the group of average citizens. An increase in taxes made the businesses fall and workers were also losing their jobs.

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