Which of the following are examples of Reagan's
conservative economic policies?

Check any of the boxes that apply.

• cutting school lunch programs
• reducing government regulation
• cutting defense spending
• reducing funding for government agencies
• tightening environmental regulations

Answer : 1,2,4

Cutting school lunch programs, reducing government regulation and reducing funding for government agencies are examples of Reagan's conservative economic policies.

Explanation:

Reagan's economic policy was characterized by lowering taxes, reducing budget expenditure, limiting state interference in the economy and limiting inflation by checking the amount of money in circulation.

The 1950s and 1960s were a period of overwhelming dominance of Keynesian concepts in the economic policy of most Western countries. Keynes, who pointed to the need for continuous government involvement in economic affairs, also created the idea of a welfare state. The weakness of Keynesian methods of boosting the economy were revealed by the energy crisis after the Arab-Israeli war in 1973, which turned into a recession.

As a consequence, American economists turned towards liberal tendencies. The goal was to defend free market principles and reduce state interference in the economy. A restrictive monetary policy was to ensure a high level of interest rates, eliminate the budget deficit and reduce its expenses. On the other hand, supply economy, which Reagan was a supporter of, assumed increasing supply, encouraging entrepreneurs to increase production and investment. He wanted to achieve this effect by lowering taxes, stimulating savings, and increasing capital resources. Reaganomics was therefore a combination of supply and monetarist concepts.

This theory said that the main sources of economic hardship lay on the supply side. It sought to privatize the public sector, decentralize, curb rising inflation and, as already mentioned, reduce taxes, which on the one hand reduced revenues to the state budget, but also stimulated private investment. High military spending resulted in a significant increase in the budget deficit, but also clearly stimulated demand.  

Ronald Reagan's policy involved the privatization of large state-owned enterprises. Tax breaks were applied for those investing in shares and citizens were encouraged to invest capital in private pensions. The boom on the stock markets that accompanied these activities had a positive effect on the decisions of stock exchange boards regarding transnational expansion.

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explanation:

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