The figure to the right illustrates the dynamic AD-AS model. LRAS, LRAS2 Suppose the economy is in equilibrium in the first period at point (A). In the second period, the economy reaches SRAS point (B). What policy would the federal government likely pursue in order to move AD2 to AD2, policy and reach SRAS2 103 equilibrium (point C) in the second period? C B O A. Increase government spending 100 GDP deflator AD2,(polic O B. Increase taxes O C. Open market purchase of government securities AD2 O D. All of the above AD 14 :14 34.4 Real GDP ($trillions)