Use the following to answer questions:
Figure: Fiscal Policy Options 
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD, the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates.
Definitions:
Negative Reinforcement
A behavioral principle where the removal of an adverse stimulus strengthens or increases the likelihood of a desired behavior.
Positive Punishment
Adding an undesirable stimulus to decrease a behavior.
Negative Punishment
A behavioral principle where the removal of a desirable stimulus following a behavior decreases the likelihood of that behavior occurring in the future.
Shaping
Gradual training that rewards behavior progressively closer to the desired one.
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