When Reagan took office, he brought with him a new economic philosophy. With the guidance of his economic advisors, he tried to stimulate the economy. To do this, his administration cut taxes and invested government money in job-creation programs. It seemed to work. In the eight years that Reagan was president, the unemployment rate fell from 7.5 percent to 5.4 percent. During that same period, inflation dropped from 12.5 percent to 4.4 percent. Which of these economic concerns was related to the achievements described in the passage?

2 Answer