According to President Reagan's model for supply-side economics, the first step to triggering a cycle of growth was

reducing taxes.

raising taxes.

regulating businesses.

creating government programs.

Option A: Reducing taxes.

According to his "supply-side" economic program, Reagan believed that the reduction of taxes was the first step to economic growth. At the beginning of his term (1981-89), he accomplished to reduce taxes to 25 percent for individuals and corporate for a three-year period, after which he would eventually increase revenues from taxes as income levels grew.

Just finished the test ... the right answer is A. Reducing taxes.