Use the Following Figure to Answer the Questions : Figure

Use the following figure to answer the questions : Figure 8.5:
- In Figure 8.5,if this economy's inflation goal is a price level of P₂ but the equilibrium price level is P₃,one way to accomplish this using fiscal policy would be to

A) Decrease AD by decreasing income taxes.
B) Decrease AS by decreasing the money supply.
C) Decrease AD by reducing transfer payments.
D) Increase AS by reducing government regulations.