1)Expansionary demand management policy measures tend to ... a.increase the real GDP, but reduce inflation. b.increase both inflation and the level of unemployment. c.increase the production cost, which will decrease total production. d.increase both the real GDP and inflation. 2)Stagflation is best characterised by a/an _______ and can be solved by ___________. a.increase in unemployment and the price level; increasing productivity b.increase in output and the price level; increasing government spending c.decrease in economic activities and unemployment; decreasing wages d.declining total real production; decreasing personal income taxes 3)Which one of the following would increase per unit production cost and therefore shift the aggregate supply curve to the left? a.An increase in worker productivity and production advances. b.A reduction in business taxes. c.An increase in the price of imported resources. d.The deregulation of industry. 4)Which of the following is correct regarding the figure above? a.The aggregate supply increases due to the fall in the tax rate. b.The aggregate supply increases due to the fall in the tax rate. c.The graph shows an increasing AS curve, due to increase in output produced from some number of available inputs. d.The graph shows an increase in AS, as a results of an increase in net exports. 5)In the AD-AS model, the aggregate supply curve is upward sloping because... a.it illustrates the total real output supplied at each price level. b.as the price level decreases, total production increases. c.as the price level increases, total production decreases. d.as the price of a good increase, quantity supplied increases