Asked by jason rivera on May 26, 2024
Verified
Describe the Laffer curve.
Laffer Curve
A theory that illustrates the relationship between tax rates and the amount of tax revenue collected by governments.
- Acquire knowledge about the Laffer curve and analyze its impact on taxation strategy and public earnings.
Verified Answer
MS
Matthew SturrockMay 29, 2024
Final Answer :
The Laffer curve depicts the relationship between the size of a tax and the amount of tax revenue generated. As the size of a tax increases, tax revenue first increases but then decreases.
Learning Objectives
- Acquire knowledge about the Laffer curve and analyze its impact on taxation strategy and public earnings.