How can a government effectively use fiscal policy to manage inflation while also addressing high unemployment rates?

A government can use fiscal policy to manage inflation and unemployment by adjusting its spending and taxation. When inflation is high, the government might reduce its spending or increase taxes to take money out of the economy, which can help lower prices. However, if unemployment is also high, the government may need to balance this by investing in job creation programs or infrastructure projects that stimulate economic activity and create jobs. For example, if the government builds new roads, it can hire workers, which lowers unemployment while also ensuring that the economy grows in a controlled way. This careful balancing act helps to stabilize prices while supporting those who are out of work.