Fiscal tools are methods used by governments to influence a country's economy. These tools include taxation, government spending, and public debt. By adjusting tax rates or increasing spending on public services, governments can stimulate economic growth or control inflation. Governments use fiscal tools to achieve specific economic goals, such as reducing unemployment or promoting investment. For example, during a recession, a government might lower taxes or increase spending on infrastructure projects to boost demand and create jobs. Conversely, during periods of high inflation, it may raise taxes or cut spending to stabilize the economy.