Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

What does the Laffer curve illustrate?

  • Athe amount of tax revenue received at each tax rate
  • Bthe impact on the distribution of income after tax rates rise
  • Cthe rise in inflation following a fall in unemployment due to a cut in income tax
  • Dthe rise in poverty due to a rise in the basic rate of income tax

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