The graph below depicts an economy where an Increase In aggregate demand has caused Inflation. Assume the government decides to conduct fiscal policy by decreasing government purchases to restore full-employment GDP. Fiscal Policy 180 LRAS AS 160 140 120 100 Price Level 80 60 AD 1 40 AD 20 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars)