The graph plotting the tax rate on the horizontal axis and tax revenues on the vertical axis,which was used by supply-side economists to suggest that tax rates were too high,in known as the
A)Beveridge curve.
B)Phillips curve.
C)Taylor rule.
D)Laffer curve.

Question

Quizplus · Accepted Answer

The graph that is used to suggest that tax rates are too high is known as the Laffer Curve. It was developed by economist Arthur Laffer and is used to demonstrate that lowering tax rates could potentially increase tax revenues. This theory forms the basis of supply-side economics.

The Graph Plotting the Tax Rate on the Horizontal Axis