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The laffer curve shows that there is a level of taxation at which government revenue is maximised. It assumes that government revenue will be zero if tax rate is 100% since nobody would work and assumes that if tax rate was zero then government would receive no revenue. As such it is logical to assume that there must be a tax rate between 0 and 100 which would maximise government revenue
The Laffer curve is a graph in economics that shows the relationship between the federal tax rate, and total government revenue. If the y-axis is government revenue, and the x-axis is tax rate, the graph appears to be an upside down parabola; however, if the x-axis is govt. tax revenue, and the y-axis is tax rate, the graph is a sideways, parabolic non-function. Either way, at a tax rate of 100%, there is $0 in revenue, and at a tax rate of 0%, there is also $0 in revenue. It illustrates that at a certain tax rate, govt. revenue is maximized.
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Who originated the theory that advocates in a recession the people spend and the government lower taxes?
Arthur Laffer allegedly scribbled the idea for his now famous "Laffer Curve" allegedly showing a an inverse and direct relationship between income tax rates and taxable income. The now discredited theory held that lowering effective income tax rates actually led to an increase in taxable income.
What is indeference curve?
Indifference curve is a curve. A curve that is being intersected with the budget line. In order to show the maximum satisfaction. Dave Ono:
How do you show on a demand curve an increase in the demand for a good?
You can choose to shift the demand curve to the right i.e. expansion of demand.
How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
What is a demand and supply curve?
A demand and supply curve is used in economic to show that in a competitive market, the price of a product will vary depending on the need of the consumers.
What supply side economics curve originally drawn on a napkin in a Washington bar purports to show that lower tax rates bring in greater tax revenues?
Laffer curve
The Laffer curve predicts the effects of changes in the tax rate on which of the following?
tax revenues
10 Points This curve sHow is that lower taxes can mean higher government revenue and it is named for what economist who drew it on Dick Cheney's cocktail napkin?
Arthur Laffer
What is reaganomics closely associated with?
The Laffer Curve, which is a special case situation in economics where reducing taxes increases government revenues by stimulating the economy.
When did George Laffer die?
George Laffer died in 1933.
When was George Laffer born?
George Laffer was born in 1866.
When was Larry Laffer created?
Larry Laffer was created in 1987.
When was Arthur Laffer born?
Arthur Laffer was born on August 14, 1940, in Youngstown, Ohio, USA.
Did aurthur laffer vote for Bill Clinton?
No, Arthur Laffer did not vote for Bill Clinton. Laffer is a conservative economist and was an adviser to Republican presidents, including Ronald Reagan. Therefore, it is unlikely he voted for Clinton, a Democrat.
Who originated the theory that advocates in a recession the people spend and the government lower taxes?
Arthur Laffer allegedly scribbled the idea for his now famous "Laffer Curve" allegedly showing a an inverse and direct relationship between income tax rates and taxable income. The now discredited theory held that lowering effective income tax rates actually led to an increase in taxable income.
What has the author Jax Laffer written?
Jax Laffer has written: 'The Blood Within' 'Another side of evil' -- subject(s): Crimes against, Fiction, Rapists, Women
What is indeference curve?
Indifference curve is a curve. A curve that is being intersected with the budget line. In order to show the maximum satisfaction. Dave Ono:
