If the Economy Is Experiencing Inflation, Then the Most Appropriate

Multiple Choice

If the economy is experiencing inflation, then the most appropriate government policy would be to:

A) shift the aggregate demand curve by using a tax increase coupled with spending cuts.
B) shift the aggregate demand curve by using a tax increase coupled with more spending.
C) shift the aggregate demand curve by using a tax cut coupled with spending cuts.
D) shift the aggregate demand curve by using a tax cut coupled with more spending.
E) shift the aggregate supply curve by using a tax cut coupled with spending cuts.