(1) Suppose the economy is under recession. How would a cut in taxes affect output (Y), price level (P), and unemployment (U)? Please use the models and explain your reasoning. Be sure to state the assumptions clearly.(10 points)

(2) In recent decades, macroeconomic policy-making process has been strongly influenced by a theory called "supply side economics". Why some economists are against it? Why some support it?Please answer this question by summarizing the assigned articles in blackboard under "Fiscal Policy".(5 points)