The Laffer curve is a graph of the relationship between tax rates and:
a. real GDP.
b. total tax revenues.
c. government spending.
d. inflation.
b
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Identify the correct statement
a. Firms under monopolistic competition face inelastic demand curves. b. Firms under monopolistic competition produce and sell products that are complements. c. Firms under monopolistic competition can enter or leave the market with ease in the long run. d. Firms under monopolistic competition act interdependently.
Each of the Reserve Banks has a president who is:
A. appointed by the bank's board of directors but approved by the board of governors. B. appointed by the board of governors but approved by the bank's board of directors. C. selected from the Board of Directors. D. elected by the commercial banks in their district.
In order to be effective, a price ceiling
A) must be set above equilibrium price. B) must be set below equilibrium price. C) must be set at equilibrium price. D) must be a zero price.
An unregulated natural monopoly can lead to
A. Higher prices for consumers. B. Loss of economies of scale. C. An optimal mix of output. D. Marginal cost pricing.