One Implication of the Laffer Curve in Supply-Side Arguments Is

question 215

True/False

One implication of the Laffer Curve in supply-side arguments is that cutting taxes may actually
reduce the budget deficit, contrary to what traditional economics teaches.

---

Definitions:

Box

A container, often square or rectangular, used for storage or shipping.

Consumer Surplus

Consumer surplus is the difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a product because of its cost of production and what they actually receive (the market price).

Economy

A system for coordinating society’s productive activities.