Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 29
9708Effectiveness of policy options to meet all macroeconomic objectives
The government's chief economist says that increasing the top rate of income tax from 40% to 45% is likely to reduce tax revenue by 2%. Which economic concept might explain this prediction?
- AKuznets curve
- BLaffer curve
- CLorenz curve
- DPhillips curve
As printed in the paper
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Correct answer: B. Laffer curve
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