2. Some supplyside economists argue that decreasing taxes will result in higher output at current target ination with no change in the policy rate. (a) What changes in investment and potential output are supposed to follow 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