Figure 16-1 -Refer to Figure 16-1. Consider Point a Where Inflation Is

Multiple Choice

Figure 16-1
-Refer to Figure 16-1. Consider point A where inflation is relatively high and unemployment is relatively low. In order to move down the curve toward point B, what fiscal policy measures should the policymakers undertake?

A) Decrease taxes and government spending
B) Increase taxes and government spending
C) Increase taxes and decrease government spending
D) Decrease taxes and increase government spending