Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: AD-AS Model I
-(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

A) increase taxes and decrease government spending.
B) decrease taxes and increase government spending.
C) increase the money supply and interest rates.
D) decrease the money supply and interest rates.