1.How was supply-side economics expected to change the role of the federal government in the economy?

In the 1920s and 1930s, Keynes had argued that the government could best improve the economy by increasing consumers' demand for goods. This meant giving people more money—either directly, through government payments and programs, or indirectly, by creating jobs. Once people had more money to spend, Keynes argued, they would purchase more goods and services, which would cause the economy to grow.

2.What were Reagan's foreign policy goals?

While taking decisive measures to change the direction of domestic policy, Reagan was equally determined to defend American interests in the Cold War. He believed in a tough approach toward the Soviet Union, which he called an “evil empire.” He favored large defense budgets to strengthen both conventional military forces and the nuclear arsenal.