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Q: The Laffer curve is the graphical representation of :

  • 1
    The relationship between tax rates and absolute revenue these rates generate for the government.
  • 2
    The inverse relationship between the rate of unemployment and the rate of inflation in an economy.
  • 3
    The inequality in income distribution
  • 4
    The relationship between environmental quality and economic development.
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Answer : 1. "The relationship between tax rates and absolute revenue these rates generate for the government."

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