-Refer to the Above Diagram, in Which Q_f Is the Full-Employment

-Refer to the above diagram, in which Q_f is the full-employment output. If the economy's present aggregate demand curve is AD₂:

A) the most appropriate fiscal policy is an increase of government expenditures or a reduction of taxes.
B) the most appropriate fiscal policy is a reduction of government expenditures or an increase of taxes.
C) government should undertake neither an expansionary nor a contractionary fiscal policy.
D) the economy is achieving its maximum possible output.