Achieving sustainable market growth is a complex endeavor, requiring careful regulation of government spending and tax policies. Fiscal policy, the utilization of these tools by governments, can stimulate growth by enhancing aggregate demand or by allocating resources into productive sectors. However, excessive outlay can lead to price instability

Governments frequently implement regulatory policies to influence the economy. These measures can have a pronounced impact on inflationary pressures. When governments increase spending or modify taxes, it can influence aggregate demand within the economy. High levels of aggregate demand can lead to inflation as businesses raise prices to meet highe