A) The relationship between tax rates and absolute revenue these rates generate for the government.
B) The inverse relationship between the rate of unemployment and the rate of inflation in an economy.
C) The inequality in income distribution.
D) The relationship between environmental quality and economic development.
Correct Answer: A
Solution :
In economics, the Latter curve is a hypothetical representation of the relationship between government revenue raised by taxation and all-possible rates of taxation. It is used to illustrate the concept of taxable income elasticity - which taxable income will change in response to changes in the rate of taxation.
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