20Taxation Public ExpenditureMedium1 mark
The diagram shows the Laffer curve.
Which combination correctly identifies the labels on the axes?
| horizontal (x) axis | vertical (y) axis | |
|---|---|---|
| A | cumulative percentage of income | cumulative percentage of tax revenue |
| B | income inequality | per capita income |
| C | tax rate | tax revenue |
| D | tax revenue as a percentage of GDP | tax rate as a percentage of GDP |