Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options.If the aggregate demand curve is AD,the most appropriate discretionary fiscal policy is to _____ government transfer payments and _____ income tax rates.
Definitions:
Two-part Tariff
A pricing strategy that consists of a fixed fee plus a variable usage fee, common in services like utilities.
Entry Fee
An initial charge required to gain access to a service, event, or establishment.
Tying
Practice of requiring a customer to purchase one good in order to purchase another.
Price Discrimination
The strategy of selling the same product at different prices to different groups of buyers, often based on their willingness to pay.
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