To decrease output the government could adopt policies that
A) increase aggregate supply and aggregate demand.
B) decrease aggregate supply and aggregate demand.
C) increase aggregate supply and decrease aggregate demand.
D) decrease aggregate supply and increase aggregate demand.

Question

Quizplus · Accepted Answer

Decreasing both aggregate supply and aggregate demand would lead to a reduction in output, as both the production capacity and the overall demand in the economy would be lowered.

To Decrease Output the Government Could Adopt Policies That