What economic strategy is often associated with Ronald Reagan's policies in the 1980s?

The correct answer is associated with Supply-Side Economics, which became a hallmark of Ronald Reagan's economic policies during the 1980s. This strategy posits that economic growth can be most effectively fostered by lowering taxes and decreasing regulation. Proponents argue that when individuals and businesses retain more of their income, they are more likely to invest in production, which, in turn, stimulates economic growth and creates jobs. Reagan’s administration implemented significant tax cuts, particularly for higher income brackets and corporations, on the premise that this would lead to increased investment and consumption throughout the economy.

Supply-side economics contrasts sharply with Keynesian economics, which emphasizes government intervention and spending as a means to manage economic cycles. The focus on tax cuts and deregulation in Reagan’s policies aimed to shift the economic emphasis away from government spending and encourage private sector activity.

Progressive taxation, which involves higher tax rates for higher income levels, was not a key component of Reagan's approach. Instead, he advocated for policies that favored lower tax rates across the board. Similarly, social welfare reform, while a topic during Reagan's presidency, does not encapsulate the overarching economic strategy that defined his presidency in the same way that supply-side economics does.