Answer / suvajit dutta

inflation is a rise in the general level of prices of goods
and services in an economy over a period of time.[1] When
the general price level rises, each unit of currency buys
fewer goods and services. Consequently, inflation also
reflects an erosion in the purchasing power of money – a
loss of real value in the internal medium of exchange and
unit of account in the economy.[2][3] A chief measure of
price inflation is the inflation rate, the annualized
percentage change in a general price index (normally the
Consumer Price

Answer / shiv

Inflation: As given in 1st answer.
Fiscal Policy: Relates to Govt. Revenue and Expenditure
related decisions i.e. revenue generation from taxes etc and
spending on welfare, defense etc.
Monetary Policy: Relates to Central Bank's (In India, RBI)
policies like Bank Rate determination, bond buying and
selling, deciding monetary circulation etc. These activities
generally target inflation and interest rates in the economy.
GDP: Is the total value of all goods and services produced
within the country.

Answer / kaps

Fiscal policy refers to a government's use of spending and taxation to influence economic activity.
The budget is said to be balanced when tax revenues equal
government expenditures. A budget surplus occurs when government tax revenues exceed expenditures, and a budget deficit occurs when government expenditures exceed
tax revenues.

Monetary policy refers to the central bank's actions that affect the quantity of money and credit in an economy in order to influence economic activity. Monetary policy is
said to be expansionary (or accommodative or easy) when the central bank increases the quantity of money and credit in an economy. Conversely, when the central bank is
reducing the quantity of money and credit in an economy, the monetary policy is said to be contractionary (or restrictive or tight).

Both monetary and fiscal policies are used by policymakers with the goals of maintaining stable prices and producing positive economic growth. Fiscal policy can also be used as a tool for redistribution of income and wealth.

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