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