Which of the following actions can help reduce inflation in an economy according to fiscal policy principles? Select all that apply.

To reduce inflation in an economy, fiscal policy can play a key role by adjusting government spending and taxation. When the government cuts its spending, it reduces the amount of money in circulation, which can help lower demand for goods and services. For example, if the government decides to spend less on public projects, people may have less money to spend overall, leading to lower prices. Additionally, increasing taxes can also help by taking more money out of consumers' hands, which can reduce spending and help control inflation. Overall, these actions work by limiting the amount of money available in the economy, thereby helping to stabilize prices.