The Laffer curve demonstrates that: policymakers will always reduce tax revenues by raising tax rates. policymakers can always increase tax revenues by raising tax rates. none of the other answers are correct above some point on the tax rate scale, lowering tax rates increases tax revenues. if tax rates are 100%, there will be large tax revenues.

The Laffer Curve theory was developed by the economist Arthur Laffer and it shows the relationship…

Answered: The Laffer curve demonstrates that:…

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government

Section18.10: Demand-side And Supply-side Views Of The Economy And Government Tools For Changing Real Gdp

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The Laffer curve demonstrates that:

	policymakers will always reduce tax revenues by raising tax rates.
	policymakers can always increase tax revenues by raising tax rates.
	none of the other answers are correct
	above some point on the tax rate scale, lowering tax rates increases tax revenues.
	if tax rates are 100%, there will be large tax revenues.

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