1.The appropriate demand management policy during a recession is....a)an increase in interest rates;b)a contractionary monetary policy;c)a decrease in government spending;d)a decrease in tax rates. 2.Which of the following is correct regarding the AD -AS model?a)The AD-AS model cannot be used to study the general price level;b)The AD curve is upward sloping,showing that there is a positive relationship between price and output and income;c)When the price level rises ,the central bank may decide to raise the interest rate and this will shift the AS curve to the right;d)There will be a greater demand for foreign currency and lower demand for the rand when the interest rate increases;e)None of the above. 3.Contractionary demand management policies tend to...a)increase both inflation and the level of unemployment;b)decrease the real GDP and the price level;c)decrease real GDP and increase the price level;d)increase the price level and decrease real output