In the context of the Phillips Curve dynamics, arrange the following steps in the correct order of how increasing personal income taxes affects inflation and unemployment: A) Decrease in disposable income, B) Shift of the aggregate demand curve leftward, C) Increase in unemployment, D) Decrease in inflation.

When personal income taxes increase, people have less money to spend because of A) a decrease in disposable income. With less money available, consumers buy fewer goods and services, which leads to B) a leftward shift of the aggregate demand curve. As businesses see lower demand, they may need to cut back on hiring or even lay off workers, resulting in C) an increase in unemployment. With fewer people employed and spending less, the overall demand in the economy drops, which can lead to D) a decrease in inflation, as prices may stabilize or even fall. This sequence shows how higher taxes can impact the economy by reducing spending and affecting employment levels and price stability.