The nation is currently experiencing a period of rising prices. Inflation is making consumer goods increasingly difficult to afford as wages have remained constant. As a member of Congress, what changes would you suggest to fiscal policy to balance the budget and indirectly address inflation? Suggest at least two specific changes to revenue and expenditures.

Inflation in a country makes its citizen difficult to survive. The cost of every commodity increases that are essential for the people.

Explanation:

Inflation occur when the economy of a country grows due to the increased spending and expenditure. As a result the price of every item and goods increases and the value of currency decreases.

Some of the methods to fight inflation are :

-- the government can increase the interest rates on the borrowings and decrease the bond prices, This reduces the supply of money in the market.

-- the government can decrease the expenditure made by the government or by reducing the private spending such increasing the tax paid by the people.

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