PLEASE ANSWER QUESTIONS #46 AND 47.

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Equilibrium Point Maximum Revenue Point A Point B Revenue No Revenue 0% Tax Rates 100% T* [32%] Referencing the Graph Above: Laffer Curve In 1923 and 1925 the Mellon tax cuts reduced the maximum tax rate from 73% to 25%, increased the thresholds, and dramatically reduced the number of income tax brackets from 52 to 19. Assuming T* is 32%, between 1921 and 1929 the total wealth (GDP) grows 42%. 46. Increasing the bracket' income thresholds and cutting the maximum tax rate to 25% will move the economy on the Laffer Curve, the tax base and place the economy in the A) right toward economic growth, contract; normal zone B) left toward economic growth; expand, normal zone C) right toward redistribution; contract, prohibitive zone D) left toward economic growth; have no effect on, normal zone 47. In 1923 and 1925 the Mellon tax cuts reduced the tax rates ranging from 47% to 72% on income over a threshold of 80,000 dollars and below a threshold of 500,000 dollars to 24% on income over a threshold of 80,000 dollars and below 1,000,000 dollars. Taxpayers making between 80,000 dollars and 500,000 dollars were given a tax cut. A) True B) False