According to the income-expenditure model what is an appropriate short-run policy response by the government of Genovia?

Suppose the current economic situation for the economy of Genovia is represented in the following diagram. PAE PAEE 0 Y* YE According to the income-expenditure model what is an appropriate short-run policy response by the government of Genovia?No policy response is required as the unplanned accumulation of inventories will lead businesses to cut production. Increase government transfer payments and increase exogenous taxes by the same amount. Increase government spending and increase exogenous taxes by the same amount. Increase government transfer payments and reduce taxes. Reduce government transfer payments and increase taxes