4. An increase in aggregate supply will cause the price level to: a. rise and GDP to rise b. rise and GDP to fall. c. rise and the unemployment rate to fall. d. fall and GDP to rise. e. fall and the unemployment rate to rise. 5. To combat a recession, Keynesian fiscal policy recommends: a. An increase in taxes. b. An increase in government spending. c. An increase in taxes and a decrease in government purchases to balance the budget. d. A reduction in both taxes and government spending