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The representation of the relationship between possible rates of taxation and the resulting levels of government revenue is called
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- Laffer Curve
- Griffin curve
- Philips curve
- Gini's curve
Correct Option: A
Laffer curve is a representation of the relationship between possible rates of taxation and the resulting levels of government revenue. It illustrates the concept of taxable income elasticity ---i.e., taxable income will change in response to changes in the rate of taxation
