Question

The economy of a country has shown signs of overheating, such as high inflation rates. the government decides to implement fiscal policy. which action should it take to achieve the nations economic goals?

Answer 1

Here are several fiscal policies that could be taken if the economy of a country shows signs of overheating :
- Increase taxes
- Decrease spending

Both of these will handle the pressure from the inflation

hope this helps

Answer 2

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.