What economic policy was favored during the Reagan administration?

The favored economic policy during the Reagan administration was supply-side economics. This approach was characterized by the belief that reducing taxes, particularly on businesses and high-income earners, would promote investment, lead to job creation, and ultimately result in economic growth. Proponents of supply-side economics argued that when individuals and corporations had more capital at their disposal, they would invest it in ways that would benefit the broader economy.

Reagan's economic strategies included significant tax cuts, deregulation, and a focus on free-market principles, all elements associated with supply-side economics. This policy was intended to stimulate production (the "supply" side) rather than focus on consumer demand. Supporters believed that these policies would lead to increased economic growth that would benefit all layers of society, while critics pointed out issues like increasing income inequality and national debt.

Other economic theories mentioned, such as Keynesian economics, emphasize the role of government intervention and spending to manage economic cycles. Monetarism focuses on controlling the money supply to combat inflation and is associated with economists like Milton Friedman. A planned economy suggests a system where the government makes all economic decisions, which runs contrary to the principles of free-market economics that Reagan promoted.