The Laffer curve expresses a relationship between
A) tax rates and tax revenues.
B) inflation and unemployment.
C) interest rates and saving.
D) money supply and the price level.

Question

Quizplus · Accepted Answer

The Laffer curve illustrates the relationship between tax rates and the total tax revenues collected by the government. It suggests that there is an optimal tax rate that maximizes revenue without discouraging economic activity.

The Laffer Curve Expresses a Relationship Between