What economic policy was associated with Reaganomics?

The correct association with Reaganomics is supply-side economics. This economic policy emphasizes the belief that reducing taxes for businesses and individuals will stimulate investment, increase production, and ultimately lead to economic growth. Proponents argue that when people keep more of their income, they are more likely to invest and spend, which in turn benefits the overall economy.

Reaganomics specifically sought to address the economic stagnation of the late 1970s by implementing tax cuts, deregulation, and a focus on reducing government spending. The idea was that by incentivizing production and investment, economic expansion would follow, benefiting all societal levels through a trickle-down effect.

Although other economic theories like Keynesian economics focus on government intervention to manage demand and stabilize economic cycles, they do not align with the principles behind Reaganomics. Similarly, monetarism emphasizes the control of money supply to manage inflation and does not directly correlate with the tax policies and deregulation that characterize supply-side economics. Socialist economic reforms, on the other hand, advocate for collective ownership and redistribution which starkly contrasts with the capitalist, market-driven approach of Reaganomics.