Suppose a wave of investor and consumer optimism has increased spending so that the current level of output exceeds the long-run natural rate. If policy makers choose to engage in activist stabilization policy, they should

1. decrease taxes, which shifts the aggregate demand curve to the right.
2. decrease government spending, which shifts the aggregate demand curve to the right.
3. decrease taxes, which shifts the aggregate demand curve to the left.
4. decrease government spending, which the shifts the aggregate demand curve to the left.