What are the overall tradeoffs with regard to this choice? Policymakers have chosen to fight inflation by decreasing AD , but this further reduces aggregate output and makes the recession worse. Policymakers have chosen to fight inflation by increasing AD , but this further reduces aggregate output and makes the recession worse. Policymakers have chosen to fight a recession by increasing AD , but this further increases aggregate output and makes inflation worse. Policymakers have chosen to fight a recession by decreasing AD , but this further reduces aggregate output and makes inflation worse