The Reagan Administration's Experiment with Supply-Side Economics Produced a Historic

question 22

Multiple Choice

The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by

• A) falling real interest rates.
• B) high unemployment rates.
• C) a dramatic increase in the federal government's budget deficit.
• D) a reduction in the U.S. trade deficit.
• E) All of the above.

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Definitions:

Tim Berners-Lee

The inventor of the World Wide Web and the director of the World Wide Web Consortium (W3C).

Production Possibilities Frontier

A graphical representation that shows the various combinations of output that an economy can produce given the available resources and technology.

Opportunity Cost

Yielding potential gains from different scenarios when one is favored.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.