The Laffer curve suggests which of the following? a. the optimal tax rate on labor income is 0% b. an increase in tax rates leads to an increase in labor supply. c. there is some maximum amount of tax revenue that the government can collect from taxing income. d. the optimal tax rate leads to the highest amount of tax revenue.
The Laffer curve suggests which of the following? a. the optimal tax rate on labor income is 0% b. an increase in tax rates leads to an increase in labor supply. c. there is some maximum amount of tax revenue that the government can collect from taxing income. d. the optimal tax rate leads to the highest amount of tax revenue.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Income Inequality And Poverty
Section20.2: The Political Philosophy Of Redistributing Income
Problem 2QQ
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The Laffer curve suggests which of the following?
a. the optimal tax rate on labor income is 0%
b. an increase in tax rates leads to an increase in labor supply.
c. there is some maximum amount of tax revenue that the government can collect from taxing income.
d. the optimal tax rate leads to the highest amount of tax revenue.
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