Concept:Demand-pull inflation arises when aggregate demand exceeds aggregate supply.
It is controlled by reducing the purchasing power of consumers.
Explanation:When there is too much money chasing too few goods, prices rise.
To reduce aggregate demand, the government can adopt a tight fiscal policy.
One effective measure is to increase income taxes.
Higher income taxes leave consumers with less disposable income.
With lower disposable income, consumers spend less on goods and services.
This fall in total demand helps bring prices down and control inflation.
Reducing income taxes or raising salaries would increase spending, making inflation worse.
Increasing import duties mainly affects imports, not overall aggregate demand directly.
Answer:A. increase income taxes