Under Reagan's policies, what was the shift regarding the role of government in economic programs?

Study for the AMSCO AP United States History Exam (APUSH) – Period 9. Enhance your knowledge with flashcards and multiple-choice questions. Each question comes with hints and explanations. Get ready for your exam!

The choice that correctly reflects the shift under Reagan's policies regarding the role of government in economic programs is centered on the debate around tax cuts and government spending cuts. During Reagan's presidency, there was a strong emphasis on supply-side economics, which advocated for significant tax reductions to stimulate investment and economic growth. This approach posited that lowering taxes would lead to increased consumer spending, business investment, and ultimately create jobs—a hallmark of Reaganomics.

Additionally, Reagan's administration actively pursued cuts in government spending, particularly in social welfare programs, arguing that a smaller government would lead to greater efficiency and increased private sector growth. This significant shift marked a move away from the liberal policies of the previous decades that often emphasized a larger role for government in managing the economy and providing social support.

In this context, the focus on tax cuts and reductions in government spending encapsulated the broader shift towards a more conservative economic agenda, which was characterized by a skepticism of government intervention in the economy.

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