ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Government fiscal and monetary policy. Technological changes. Natural disasters pr extreme weather events. Corporate or government performance data.

Detailed explanation-2: -Best ways to maintain price stability Governments can raise or lower taxes and adjust government spending to influence the amount of disposable money in the system. Central banks, such as the U.S. Federal Reserve, can adjust interest rates on loans to combat inflation.

Detailed explanation-3: -Fiscal and monetary policy can be directed to ensure stable prices. For example, the government can change and manage spending and tax policies to influence the prices and monetary policies by the central bank controlling money supply and interest rates, subsequently contributing to stable prices and economic growth.

Detailed explanation-4: -What Is Price Stability? Price stability is when the general level of prices in the economy avoid significant fluctuations, meaning they don’t rise or fall drastically in indexes of prices like the Consumer Price Index (CPI) or the Harmonised Index of Consumer Prices (HICP).