Answer the given question.

Part B Inflation Scenario: In the late 1970's and early 1980's the U.S. was facing rapidly rising inflation which was mostly caused by expansionary economic policies. The government increased spending on the Vietnam Conflict and social "safety net" programs while the Federal Reserve maintained low interest rates. In 1975, the U.S. economy was at full employment, however, inflation was much higher than the 2-3% inflation rate the Federal Reserve likes to target. This is represented by Point B on the graph below 1. How both Fiscal Policy and Monetary Policy could be utilized simultaneously to reduce inflation to 3%. Be sure to clearly differentiate monetary from fiscal policy and be specific (simply stating contractionary policies is not specific enough)