Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T20:47:31+05:30 2021-09-30T20:47:31+05:30In: Economics What is Laffer Curve? What is Laffer Curve? economic graphs in indicator Share Facebook 1 Answer Recent 0 Questions 518 Answers 176 Best Answers 0 Points View Profile [Deleted User] 2021-09-30T20:50:21+05:30Added an answer on September 30, 2021 at 8:50 pm Laffer Curve It shows the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer’s argument that sometimes cutting tax rates can increase total tax revenue. If taxes are too high along the Laffer Curve, then they will discourage the taxed activities, such as work and investment, enough to actually reduce total tax revenue. In this case, cutting tax rates will both stimulate economic incentives and increase tax revenue. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is W-shaped recovery? What is U-Shaped recovery?