1. The deposit reserve ratio is lowered and the money supply is increased. In the IS-LM model, the LM curve moves to the right. When IS and LM reach equilibrium again, the output increases and the interest rate decreases. In the AD-AS model, the AD curve moves to the right. Considering the different forms of AS curve, we only consider the general form, that is, AS curve inclines to the upper right, so that at the new equilibrium point, the output increases and the price level rises.

2. The tax threshold is raised, the fiscal revenue is reduced, and the per capita disposable income is increased. In the IS-LM model, the IS curve will move to the right. When a new equilibrium is reached, output will increase and interest rates will rise. In the AD-AS model, the AD curve moves to the right, and at the new equilibrium point, the output increases and the price rises.

In a word, both monetary policy and fiscal policy belong to demand management, so in the AD-AS model, the AD curve moves. This is because (1) is a loose monetary policy and (2) is an expansionary fiscal policy, both of which increase the total demand, so the AD curve shifts to the right.

Monetary policy is a control measure taken by the central bank to control the money supply and credit situation in order to achieve its ultimate policy goal. The general name of various policies and measures adopted by the central bank to control and adjust the money supply or credit quantity, including credit policy, interest rate policy and foreign exchange policy.

The "ultimate policy objectives" include: controlling price stability, assisting economic growth, achieving full employment, and balancing international payments to promote financial stability. The main monetary policy tools of the central bank include: adjusting the deposit reserve ratio, adjusting the rediscount interest rate and guaranteed loan interest rate, open market operation and selective credit control, or direct or indirect control.

The effect of monetary policy depends on the slope of IS and LM curves.

When the shape of LM curve IS basically unchanged, the flatter the IS curve is, the greater the influence of LM curve movement (due to the monetary policy of changing the money supply) on the change of national income; On the contrary, the steeper the IS curve, the smaller the impact of LM curve on national income.

When the slope of the IS curve is constant, the flatter the LM curve, the smaller the effect of monetary policy will be. On the contrary, the monetary policy will be more effective. When IS is horizontal and LM is vertical, it is an extreme case of classicism, when fiscal policy is completely ineffective and monetary policy is completely effective.