please give proper explanation

1. In order for the impact on output to be minimized, during a fiscal consolidation, the central bank should a. A) decrease the policy rate. b. B) increase the policy rate. c. C) increase inflation rate. d. D) decrease money supply. 2. If the output is too high, to achieve the medium run equilibrium, the central bank will a. A) increases policy rate. b. B) reduces policy rate. c. C) increase money supply. d. D) increases inflation rate. 3. If the output is too low, to achieve the medium run equilibrium, the central bank will a. A) increases policy rate. b. B) reduces policy rate. c. C) increase money supply. d. D) increases inflation rate. 4. The Phillips curve shows that when the unemployment rate is higher than the natural rate, a. A) inflation is higher than expected. b. B) inflation is lower than expected. c. C) policy rate is higher than expected. d. D) policy rate is lower than expected