Statement I: President Reagan in 1981 and President George W.Bush in 2003 used "supply-side" arguments to justify tax cuts.
Statement II: When President George W.Bush signed legislation passing the 2003 tax cut,it represented a return to the Keynesian approach to managing the economy.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay.

Keynesian Approach

An economic theory stating that government intervention through fiscal and monetary policy is necessary to manage economic fluctuations.