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(Figure: Laffer Curve 2) the Figure Shows the Laffer Curve

Question 290

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(Figure: Laffer Curve 2) The figure shows the Laffer curve for an economy whose tax rate is 80%. Supply-side economists would argue that the government should (Figure: Laffer Curve 2) The figure shows the Laffer curve for an economy whose tax rate is 80%. Supply-side economists would argue that the government should A) reduce the tax rate to 40%. B) reduce the tax rate to 20%. C) keep the tax rate at 80%. D) reduce the tax rate to 60%.


A) reduce the tax rate to 40%.
B) reduce the tax rate to 20%.
C) keep the tax rate at 80%.
D) reduce the tax rate to 60%.

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