define what they are in the intro, maybe state the recent trends and what has been happening.
then start with how fiscal/monetary can be used to control inflation
go into depth with the processes, so in simple terms say something like this:
When the RBA buys Government bonds, the money supply is increased, and the level of interest rates is reduced, known as loosening monetary policy. This causes the economy to expand, influencing the factors of economic growth and inflation. The contrast is shown through the RBA selling Government bonds, reducing the money supply and therefore increasing the level of interest rates, known as tightening monetary policy. This is contradictionary to the economy, and reduces the level of economic growth but eases inflation.
The second arm of macroeconomic policy, fiscal policy, also works to control price stability. This deals with Government expenditure, or whether or not the budget has a surplus or deficit to expand or contract the economy. Looking at expanding the economy, the Government can increase the budget deficit by lowering taxes and increasing Government spending. To contract the economy, the Government increases its budget surplus by raising taxes, and cutting Government spending.
then make sure you talk about how they should work in unison etc.
