AS AD3 AD2 AD, Price Level O Real GDP Refer to the diagram, In which Ofis the full-employment output. If aggregate demand curve AD2 describes the current situation, appropriate fiscal policy would be to Multiple Choice O do nothing since the economy appears to be achieving full-employment real output. O increase taxes and reduce government spending to shift the aggregate demand curve rightward from AD2 to AD3. O increase taxes on businesses to shift the aggregate supply curve rightward to reduce the price level. O reduce taxes and increase government spending to shift the aggregate demand curve from ADz to AD1