according to reagan, what is the step that sets this process in motion?\n○ taxes are cut\n○ taxes are…

Brief Explanations:

The question asks about the initiating step in an economic process according to Reagan's economic policies, often referred to as Reaganomics or supply-side economics. The diagram illustrates a cycle where consumers and investors having more money leads to business expansion and economic growth. Reagan's core economic strategy involved significant tax cuts, based on the theory that reducing the tax burden on individuals and corporations would leave them with more disposable income and capital. This increase in available funds (Step 1 in the diagram) was expected to incentivize saving, investment, and spending, thereby stimulating business activity (Step 3) and leading to overall economic growth (Step 4). Therefore, cutting taxes was considered the primary action to set this economic process in motion.

Answer:

taxes are cut