Economy, asked by ashishkumar7643, 1 year ago

how can fiscal policy be used to control inflation

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Answered by Anonymous

Answer:

Fiscal Policy. The government can increase taxes (such as income tax and VAT) and cut spending. ... Both these policies reduce inflation by reducing the growth of Aggregate Demand. If economic growth is rapid, reducing the growth of AD can reduce inflationary pressures without causing a recession.

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