The Laffer Curve Is the Relationship Between

question 148

Multiple Choice

The Laffer curve is the relationship between

• A) government purchases and potential GDP.
• B) tax rates and potential GDP.
• C) tax revenue and potential GDP.
• D) tax rates and tax revenue.

---

Definitions:

W-3

A tax form used in the United States to summarize the total wages paid and taxes withheld for employees to the Social Security Administration.

Federal Unemployment Tax Return

A tax return specifically for reporting the amount of federal unemployment tax a business is responsible for paying, related to the wages paid to employees.

Form 940

An IRS form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' paychecks and FICA taxes.