What actions should be taken under the internal-external imbalance of inflation and surplus?

Question

Quizplus · Accepted Answer

Contractionary fiscal policy is used to combat inflation by reducing government spending or increasing taxes, which decreases aggregate demand. Contractionary monetary policy, through higher interest rates or reduced money supply, also aims to reduce inflation and can help correct a deficit by making borrowing more expensive and encouraging savings.

What Actions Should Be Taken Under the Internal-External Imbalance of Inflation