The ‘Laffer equation’ that relates tax revenue to the tax rate is now:T(t)=tR(a−tb),which is quadratic in t. This function peaks at t=a/2b. It cuts the x axis in two places: T(0)=0 and T(a/b)=0. In addition, note that T(t)=0 for t>a/b. To understand the ...
The Laffer curve relates ( ). A. the tax rate to tax revenue raised by the tax B. the tax rate to the deadweight loss of the tax C. the price elasticity of supply to the deadweight loss of the tax D. government welfare payments to the birth rate 查看完整题目与答案 当凸轮轴...
ANS: C 52. The total cost curve gets steeper as output increases due to a. diseconomies of scale. b. economies of scale. c. diminishing marginal product. d. increasing returns to scale. ANS: C 53. When a country is on the downward-sloping side of the Laffer curves, a cut in the ...
What is the Laffer Curve? How is it used to support supply-side economics? What's the difference between Keynesian and supply-side economics? What is the meaning of derived demand in economics? Define the term "political economy." What does political economy mean, in the context o...
What does the Laffer Curve represent in economics? What is dealt with in macroeconomics? What is the condition of equilibrium in macroeconomics? What is the Keynesian economic model, in layman terms? Explore our homework questions and answers library ...
For example, this is typically thought to be the case for a self-financing income tax cut (if the current tax rate is above the peak of the Laffer curve). Finally, note that if the net cost to the government is negative, additional resources are created. These resources could be ...
In fact Schulknecht argues that from a certain point more public debt will not ‘buy’ more safety: countries face a kind of ‘safe-assets Laffer curve’ with a maximum amount of safe assets at some level of indebtedness. See L. Schulknecht, (2016), The Supply of ‘Safe’ Assets and ...
While vacationing I wrote a bit Hayek’s concept of the“liberal dictator”and how that relates to events in Egypt (seehereandhere). While I certainly think that the concept a liberal dictatorship is oxymoronic to say the least I do acknowledge that there are examples in history of dictators...
While vacationing I wrote a bit Hayek’s concept of the“liberal dictator”and how that relates to events in Egypt (seehereandhere). While I certainly think that the concept a liberal dictatorship is oxymoronic to say the least I do acknowledge that there are examples in history of dictators...
What does the Laffer Curve represent in economics? How is economic growth represented on a Production Possibility Frontier graph? Explain what causes pivots and shifts in PPF curves? How are the production function graph and labor supply graph related in the classical model? Draw them together - ...