The Laffer Curve Shows That Increasing _______ Increases _______ When

question 56

Multiple Choice

The Laffer curve shows that increasing _______ increases _______ when _______ low.

• A)government outlays; the budget deficit; government expenditure is
• B)potential GDP; tax revenue; tax revenue is
• C)the tax rate; potential GDP; the interest rate is
• D)the tax rate; tax revenue; the tax rate is
• E)tax revenue; potential GDP; tax revenue is

---

Definitions:

Contrived Extrinsic Rewards

Incentives that are intentionally created to motivate specific behaviors or outcomes, which might not inherently be rewarding.

Smiles

Are facial expressions that typically signify happiness, pleasure, or amusement, often used as a form of non-verbal communication.

Information Processing

The method by which individuals take in, interpret, store, and retrieve information.

Fallibility

The propensity to make mistakes or errors due to human imperfection.