1. Some supplyside economists argue that decreasing taxes will result in higher output at current target ination with no change in the policy rate. (a) Mat changes in investment and potential output are supposed to folioy.r from a decrease in taxes according to supplyside economics? (b) If the assumptions of supplyside economics hold, is it possible for [i] a loss functionoptimizing central bank to not raise the policy rate and {ii} ination to not increase or to possibly decrease? Refer to the optimalpolicy rate equation and the Phillips curve in your aaswer. (c) Signicant increases in Y? have historically happened only a coupie of times in the last century. Briey discuss the practical implications of this for the supplyside View that decreasing taxes will result in higher output at current target ination with no change in the policy rate