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The Main Disagreement Among Economists About the Laffer Curve Is

Question 99

Multiple Choice

The main disagreement among economists about the Laffer curve is about whether


A) increases in taxes will decrease GDP.
B) the effect of tax decreases on GDP will be so big as to raise government revenues when taxes are cut.
C) cutting marginal tax rates will increase the incentive to work.
D) the government will collect maximum tax revenue at a 50% tax rate.

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