How to tackle Inflation using Fiscal policy measures and how it affects the economy and common...

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How to tackle Inflation using Fiscal policy measures and how it affects the economy and common people

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How to tackle Inflation using Fiscal policy measures 
Inflation is a period of rising prices. Most Central Banks target low inflation. Fiscal policy 
involves the government changing tax and spending levels in order to influence the level of 
Aggregate Demand.  
If inflation is a major issue in the economy, contractionary fiscal policies are used to slow 
down an economy through measures such as increasing taxes and decreasing government 
spending. To reduce inflationary pressures the government can increase tax rate and reduce 
government spending.

How to tackle Inflation using Fiscal policy measures and how it affects the economy and common people

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