The above curve is known as the:
A)tax "wedge" curve.
B)Okun Curve.
C)Laffer Curve.
D)Phillips Curve.

Question

The above curve is known as the:
A)tax "wedge" curve. 
B)Okun Curve. 
C)Laffer Curve. 
D)Phillips Curve.

Quizplus · Accepted Answer

The curve shown is the Laffer Curve, which illustrates the relationship between tax rates and government revenue. It is named after economist Arthur Laffer, who argued that there is an optimal tax rate that would maximize government revenue, and that beyond a certain point, higher tax rates would actually lead to decreased revenue due to disincentives for work and investment.

The Above Curve Is Known as The