Economics · Economic Theories and Fiscal Concepts

In the study of fiscal policy, a specific approach often associated with the administration of former U.S. President Ronald Reagan focuses on stimulating long-run aggregate supply. This school of thought argues that reducing marginal tax rates on high-income groups and corporations encourages productive activity and investment. A core tenet of this framework is that the economic advantages provided to the wealthy and the corporate sector will eventually permeate through the economy, benefiting lower-income strata. What is the specific term used to describe this economic concept?