Supply-side economics: An economic theory that suggests stimulating production by reducing taxes and regulations will lead to overall economic growth.
Laffer curve: A graphical representation used in economics that shows how tax rates can affect government revenue. It was often referenced when discussing tax cuts under Reaganomics.
Budget deficit: The amount by which government spending exceeds its revenue in a given fiscal year. Reaganomics was criticized for contributing to an increase in the budget deficit.