Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

• A. decrease government spending Which the shifts the aggregate demand curve to the left
• B. decrease taxes, which shifts the aggregate demand curve to the right
• C. decrease taxes, which shifts the aggregate demand curve to the left
• D. decrease government spending which shifts the aggregate demand curve to the right