How did “trickle-down economics” differ from the economic models followed by previous presidents?(1 point) Responses Tax cuts for those at the top of the economic ladder were meant spur investment to stimulate economic growth. Tax cuts for those at the top of the economic ladder were meant spur investment to stimulate economic growth. Reagan believed large federal government-run social programs were beneficial for the economy, “trickling down” to the people. Reagan believed large federal government-run social programs were beneficial for the economy, “trickling down” to the people. Increased taxes for lower- and middle-income families were meant to provide a shot in the arm to the sagging economy. Increased taxes for lower- and middle-income families were meant to provide a shot in the arm to the sagging economy. Tax breaks for lower- and middle-income families were meant to stimulate the economy as they would spend more.

Question

GPT 3.5 · Answer

The main difference with "trickle-down economics" is that tax cuts for those at the top of the economic ladder were believed to spur investment and stimulate economic growth, with the benefits eventually reaching lower- and middle-income families. This is in contrast to previous economic models where increased taxes for lower- and middle-income families were meant to provide a boost to the economy, or where large federal government-run social programs were seen as beneficial for economic growth. Additionally, tax breaks for lower- and middle-income families under "trickle-down economics" were meant to stimulate the economy as they would spend more.