Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: AD-AS and the Inflation-Unemployment Cycle
-(Exhibit: AD-AS and the Inflation-Unemployment Cycle) At point 4, if policymakers are concerned about economic performance, they will most likely respond by

A) increasing government purchases and the money supply.
B) increasing taxes.
C) decreasing aggregate demand.
D) having the Fed sell bonds.