With an upward-sloping AS curve,a decrease in transfer payments can lead to a decrease in inflation.
The fiscal policies available to the federal government for decreasing aggregate demand are to decrease government spending,increase taxes,or decrease transfer payments.Fiscal restraint will decrease aggregate demand,which will decrease equilibrium GDP and inflation.

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This is because a decrease in transfer payments (which is a form of government spending) will decrease disposable income and therefore reduce consumption, leading to a decrease in aggregate demand and ultimately a reduction in inflation. Additionally, the fiscal policies listed in the second sentence are all forms of fiscal restraint that can be used to decrease aggregate demand and reduce inflation.

With an Upward-Sloping AS Curve,a Decrease in Transfer Payments Can