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From course:

Economics A Level (DONEEEEEEE)

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Question:

What does the Laffer Curve show?

Author: eric_galvao



Answer:

-The Curve shows how much Tax Revenue would be Raised as the Tax Rate changes. At 1 Point in the Tax Rate, there would be a Theoretic Maximum Tax Revenue -But usually as Taxes Increase, it will lead to a Decline in Tax Revenue because Less Incentive to Work


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-The Curve shows how much Tax Revenue would be Raised as the Tax Rate changes. At 1 Point in the Tax Rate, there would be a Theoretic Maximum Tax Revenue
-But usually as Taxes Increase, it will lead to a Decline in Tax Revenue because Less Incentive to Work
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