American Institute of Certified Planners (AICP) Practice Exam

Which 1980 policy approach emphasized reduced federal spending and deregulation?

1. Democratic New Deal

2. Reagan Revolution

3. New Federalism

4. Progressive Era Policy

The correct answer is: Reagan Revolution

The option that accurately reflects the 1980 policy approach which emphasized reduced federal spending and deregulation is associated with the Reagan Revolution. This initiative, led by President Ronald Reagan, marked a significant shift in American political and economic policies. It was characterized by a strong belief in free-market principles, a desire to reduce the size and influence of the federal government, and the introduction of tax cuts aimed at stimulating economic growth. The Reagan Revolution sought to move power and responsibilities from the federal government to state and local governments, a concept embodied in the push for deregulation of various industries and reduced government intervention in the economy. This approach aimed to enhance individual freedoms by promoting private enterprise and fostering competition, with the belief that these changes would lead to broader economic benefits. This policy set the stage for significant economic changes throughout the 1980s, influencing both fiscal policy and regulatory practices in various sectors. The focus on cutting government spending, as well as deregulating industries ranging from finance to energy, represented a clear departure from the more interventionist policies of previous administrations.