Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy Options
-(Exhibit: Fiscal Policy Options) If the aggregate demand curve is AD₀, which of the following is the most appropriate discretionary fiscal policy to pursue?

A) increase government spending, increase individual income tax rates, and increase corporate income tax rates
B) increase government spending, increase individual income tax rates, and decrease corporate income tax rates
C) increase government spending, decrease individual income tax rates, and decrease corporate income tax rates
D) maintain existing government spending, individual income tax rates, and corporate income tax rates