An illustration of the relationship between tax rates and tax revenues is called the

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The Laffer curve shows the relationship between tax rates and tax revenues. It suggests that if tax rates are too high, people may be discouraged from working or investing, and tax revenues may actually decrease. On the other hand, if tax rates are too low, tax revenues may also be lower because there is not enough funding for government programs. The Laffer curve provides insight for policymakers on how to set tax rates to maximize tax revenues.

An Illustration of the Relationship Between Tax Rates and Tax