According to supply-side economics,when operating in the upper portion of the Laffer curve,tax cuts result in

Question

Quizplus · Accepted Answer

Supply-side economics posits that tax cuts can lead to increased economic growth, which in turn can generate higher tax revenue overall. As such, when operating in the upper portion of the Laffer curve (i.e. beyond the revenue-maximizing point), tax cuts can actually result in higher tax revenue due to the increased economic activity they stimulate. Therefore, choice D, "tax revenue increases," is the best answer.

According to Supply-Side Economics,when Operating in the Upper Portion of the Laffer