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Supply-Side Economic Policy

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First of all, one policy of the Economic policy is "supply-side economic policy". Supply-side policy is a policy that is meant to improve societies' economy. Also, it is used to describe changes in marginal rates that influence the economic rates. Supply-side economic policy began in the late 1970's. From the 1990-1993 tax were increasingly high. President john F. Kennedy made tax reductions that dropped tax rates to 90 percent. By the 1980's President Ronald Reagan reduced tax rates by up to 70 percent. During his 7 year of being president economic growth increased by 4 percent. Ronald Reagan might have used supply-side economics but others have used the opposite.

Another Economic policy is called "Demand-side economic policy". Demand-side policy is a belief that demand and supply are the main causes that are affecting the overall economy. Another name for demand-side economy is called " Keynesian economy policy ". Demand side claims that it is most successful when lower and middle class increases buying power, which increases demand and supply. The Keynesian economic policy was created by John Maynard Keynes. John wrote a book named " The General theory of employment, interest and money" John states that aggregated demand made by households, businesses and the government is the driving force in an economy. …show more content…

The federal reserve system is a banking system of the united states. The federal reserve system was founded by congress in 1913. The 3 functions of the Federal Reserve system are Monetary policy, Banking Supervision and Financial services. The main objective of the Federal reserve system is to maintain stability of the financial system. In the 1930's congress gave authority to the fed to regulate stock market margins during The Great

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