Trickle Down Economics Explained: US History Review

The video introduces and explains supply-side economics, also known as trickle down economics, emphasizing its significance for exams and real-life situations. The instructor uses an ice cream cone analogy to illustrate how economic benefits are intended to trickle down from the wealthy to the lower classes. The video also contrasts this theory with Keynesian economics, which focuses on government intervention to stimulate demand. The instructor clarifies that the video is not an endorsement of any economic theory but aims to educate viewers. Additional resources and a new show are mentioned for further learning.

Which economic theory is associated with Ronald Reagan and George Bush?

• Monetarist economics

• Marxist economics

• Supply-side economics

• Keynesian economics

In the ice cream cone metaphor for trickle down economics, who is represented by the cherry on top?

• The middle class

• The government

• The working class

• The elite or upper class

What is the primary focus of supply-side economics?

• Reducing taxes for the wealthy

• Controlling inflation

• Enhancing demand through subsidies

• Increasing government spending

What is the opposite theory to trickle down economics?

• Supply-side economics

• Behavioral economics

• Classical economics

• Keynesian economics

What is the main idea behind Keynesian economics?

• Focusing on international trade

• Government intervention to create jobs

• Allowing free market forces to operate

• Reducing taxes for the wealthy