Study the attachment and answer the following questions.

Using the AD-AS model, describe the effect of the following on output and the price level: (i) a decrease in the rate of income tax (ii) an increase in the price of oil (iii) a depreciation of the domestic currency (iv) an increase in interest rates.Consider the following assertions relating to the liabilities in respect of a benefit payable from a defined benefit pension scheme: The past service liability for the benefit is the present value of the benefit entitlement of a member who leaves on the valuation date. II The future service liability can be calculated by subtracting the past service liability from the total service liability. III For a new entrant at age 16, the total service liability equals the future service liability. Which of these assertions are true? [3]