In Figure 8
Subject:EconomicsPrice: Bought3
In Figure 8.5, if this economy's inflation goal is a price level of P2 but the equilibrium price level is P3, an appropriate policy lever would be to:
A.Decrease AD by decreasing income taxes.
B.Decrease AS by decreasing the money supply.
C.Decrease AD by reducing transfer payments.
D.Increase AD by lowering interest rates.
