If the economy is experiencing inflation, then the most appropriate government p

Question

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 more spending.
   b-shift the aggregate demand curve by using a tax cut coupled with more spending.
   c-shift the aggregate demand curve by using a tax increase coupled with spending cuts.
   d-shift the aggregate supply curve by using a tax cut coupled with spending cuts.
   e-shift the aggregate demand curve by using a tax cut coupled with spending cuts.

Explanation / Answer

b-shift the aggregate demand curve by using a tax cut coupled with more spending.

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