(Solution) - Proponents of supply side policies that aim to stimulate productivity through -(2025 Original AI-Free Solution)

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Proponents of supply-side policies that aim to stimulate productivity through tax cuts and work incentives argue that changes in the individual and corporate tax codes and cuts in capital gains taxes set the stage for productivity gains during the 1990s.
a. What effect would an increase in productivity have on the Phillips curve? Illustrate your answer with a graph.
b. What effect would the productivity increase have on inflation?