The Laffer curve demonstrates that:     policymakers will always reduce tax revenues by raising tax rates.   policymakers can always increase tax revenues by raising tax rates.   none of the other answers are correct   above some point on the tax rate scale, lowering tax rates increases tax revenues.   if tax rates are 100%, there will be large tax revenues.

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A:

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Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral.  This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.