Some of the nation's economists believe that to maximize government revenue, the tax rate should be raised to the level of the Rmax line. How would these economists draw the nation's Laffer curve

Question

11-01-2021
Business

contestada

Some of the nation's economists believe that to maximize government revenue, the tax rate should be raised to the level of the Rmax line. How would these economists draw the nation's Laffer curve

Respuesta :

Otras preguntas

Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wants out of the deal. However, th

"What is the difference between the revertible and nonrevertible rII mutants that Benzer generated?"

Order the expressions from least to greatest. 2^3 - 2^1 , 2^1 + 3^1 , 3^2

Solve for x. 2x+3≤x−5 x≤−8 x≤2 x≤8 x≤−2

A loan is being repaid by 15 annual installments of 1,000 each. Interest is at an effective annual rate of 5%. Immediately after the fifth installment is paid,

How many mL of a 0.130 M aqueous solution of chromium(II) nitrate, Cr(NO3)2, must be taken to obtain 5.08 grams of the salt

Triangle H N K is shown. Angle H N K is 90 degrees. The length of hypotenuse H K is n, the length of H N is 12, and the length of N K is 6. Law of cosines: a2 =

Online content created by an individual outside of a professional or commercial organization is a criterion of

Julissa is thinking about getting her Master’s degree. She will give up making $28,000 a year for the 2 years it takes to complete the program. She will also pa

Online content created by an individual outside of a professional or commercial organization is a criterion of

Munali Munali · Answer 1 · 2021-01-12T07:53:09+01:00

Answer:

Laffer curve is the curve built on graph which explains that tax revenue will be increased when tax rates are raised. It also indicates that the tax revenue will increase to a certain point on the R-max line after which the curve starts declining which means the tax revenue will decline.

Explanation:

Laffer curve is a theory by economists which indicates the relationship between tax rates and the tax revenue. If the tax rates are increased then the tax revenue will also rise. This is the theory which is believed by many economists and many businesses also follow such strategy to improve their business profits.