Refer to the Laffer curve below. Which of the following is true? A) At A there will be a budget surplus, but at B there will be a budget deficit. O O B) At A tax rates are higher than at B, but tax revenue collected are the same. C) At B tax rates are higher than at A, but the tax revenues collected are the same. Tax Revenue Tax Rate (Percent) B 100
Refer to the Laffer curve below. Which of the following is true? A) At A there will be a budget surplus, but at B there will be a budget deficit. O O B) At A tax rates are higher than at B, but tax revenue collected are the same. C) At B tax rates are higher than at A, but the tax revenues collected are the same. Tax Revenue Tax Rate (Percent) B 100
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Refer to the Laffer curve below. Which of the following is true?
A) At A there will be a budget
surplus, but at B there will be a
budget deficit.
B) At A tax rates are higher than at
B, but tax revenue collected are
the same.
C) At B tax rates are higher than at
A, but the tax revenues collected
are the same.
Tax Revenue
0
Tax Rate (Percent)
B
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc95f9c79-eacb-4b5e-b821-d270a5f2e910%2Fff075796-bb9d-460d-ba45-2522b49fa806%2Fp0tsrzn9_processed.png&w=3840&q=75)
Transcribed Image Text:Refer to the Laffer curve below. Which of the following is true?
A) At A there will be a budget
surplus, but at B there will be a
budget deficit.
B) At A tax rates are higher than at
B, but tax revenue collected are
the same.
C) At B tax rates are higher than at
A, but the tax revenues collected
are the same.
Tax Revenue
0
Tax Rate (Percent)
B
100
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