Figure 12-3 -Refer to Figure 12-3. If the Aggregate Demand Curve Is

Figure 12-3
-Refer to Figure 12-3. If the aggregate demand curve is AD₀, which of the following is the most Jappropriate discretionary fiscal policy to pursue?

A) increase government spending, increase individual income tax rates, and increase corporate income tax rates
B) increase government spending, increase individual income tax rates, and decrease corporate income tax rates
C) increase government spending, decrease individual income tax rates, and decrease corporate income tax rates
D) maintain existing government spending, individual income tax rates, and corporate income tax rates