What does the Laffer curve relate?
A)Tax rates and tax revenue.
B)Tax rates and GDP.
C)Tax revenue and government budgets.
D)Unemployment and inflation rates.
E)Spending and income.

Question

Quizplus · Accepted Answer

The Laffer curve relates tax rates and tax revenue, specifically how changes in tax rates can affect the amount of tax revenue generated. It suggests that increasing tax rates beyond a certain point can actually decrease tax revenue, as it may discourage economic growth and incentivize tax evasion.

What Does the Laffer Curve Relate