Fiscal Policy Is Likely to Fail to Correct Stagflation in an Economy

Multiple Choice

Fiscal policy is likely to fail to correct stagflation in an economy because _____

A) it affects both the aggregate demand and supply, but only aggregate supply needs to be changed.
B) it affects both the aggregate demand and supply, but only aggregate demand needs to be changed.
C) it affects aggregate demand only, but aggregate supply also needs to changed.
D) it affects aggregate supply only, but only aggregate demand needs to be changed.
E) it affects either aggregate demand or aggregate supply, but both need to be changed simultaneously.