Arrange the following steps in the correct order to illustrate the impact of fiscal policy on inflation control: A) Government decreases spending, B) Aggregate demand decreases, C) Inflationary pressures reduce, D) Short-run Phillips curve shifts left.

To control inflation, the government first decreases its spending, which is step A. When the government spends less, this leads to a decrease in overall demand for goods and services, which is step B. As demand falls, inflationary pressures begin to reduce, which corresponds to step C. Finally, as inflation decreases, the short-run Phillips curve shifts left, indicating a lower rate of inflation for a given unemployment level, which is step D. For example, if the government cuts back on infrastructure projects, people might spend less, leading to lower prices overall.