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Q:

Ronald Reagan, the 40th President of the US, signed the largest tax cut in the history of the country in 1981. Which economic theory was this policy centred around?

  • 1
    Laffer Curve
  • 2
    Lorenz Curve
  • 3
    Kuznets Curve
  • 4
    Sweezy's Kinked Demand Curve
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Answer : 1. "Laffer Curve"
Explanation :

1. Ronald Reagan, the 40th US President, signed the largest tax cut in his country's history in 1981.

2. This policy focused on the economic theory of Laffer Curve.

3. Laffer curve explains the relationship between tax rate and tax revenue.

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