The Laffer Curve is a central concept in
A) monetarism.
B) Keynesianism.
C) welfare economics.
D) supply-side economics.

Question

Quizplus · Accepted Answer

The Laffer Curve is a key concept in supply-side economics, which is a school of thought that focuses on stimulating economic growth through policies that reduce taxes and regulations on businesses. The Laffer Curve illustrates the relationship between tax rates and government revenue by demonstrating that at a certain point, increasing tax rates can actually lead to decreased revenue as economic activity is stifled. This concept is often cited as a justification for reducing tax rates, particularly for high earners and businesses.

The Laffer Curve Is a Central Concept in