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Refer to the above diagram. The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation? AS

Refer to the above diagram. The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation?

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AS Price Level A B AD 3 C AD 2 AD, Real GDP Refer to the above diagram. The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation? O Decrease aggregate demand by increasing taxes. O Increase aggregate demand by decreasing taxes. O Decrease aggregate supply by increasing taxes. O Increase aggregate demand by increasing government spending

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