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Laffer Curve
A theoretical representation of the relationship between tax rates and tax revenue, suggesting an optimal tax rate for maximizing revenue.
Supply-Side Economics
Main tenets: economic role of federal government is too large; high tax rates and government regulations hurt the incentives of individuals and business firms to produce goods and services.
Systematic Error
refers to a consistent, predictable error present in the results of measurements or experiments due to flaw in the measurement system.
Rational Expectations
A theory in economics suggesting that individuals make decisions based on their rational outlook, available information, and past experiences.
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