Suppose that an increase in the cost of resources increases the cost of production for the U.S. economy. If the Federal Government chooses to combat inflation, which of the following would be the best...

Suppose that an increase in the cost of resources increases the cost of production for the U.S. economy. If the Federal Government chooses to combat inflation, which of the following would be the best course of action?
Group of answer choices

1 Increase expenditure taxes.

2 None of the answers are actions that it would take.

3 Do nothing.

4 Decrease income taxes.