Fiscal policy is using authorities spending and taxation to persuade the economy. Governments usually use economic coverage to sell robust and sustainable increase and decrease poverty. Government price controls are conditions in which the authorities set prices for particular goods and services. Minimum costs Prices can't be set lower (however may be set above), Maximum rate - Limit to how a lot of costs may be raised (e.g., marketplace rent), Buffer stocks Where authorities preserve costs inside a positive band, Limiting rate increases - In a privatized monopoly (e.g., electricity, gas, water wherein there's no competition) the authorities regulator might also additionally play a function in restricting how a lot of costs may be increased. Direct rate setting - In a command economy, costs of products can be set by the authorities. Governments have an impact on the nancial system through converting the extent and sorts of taxes, the volume and composition of spending, and the diploma and shape of borrowing (Mark & Asmaa, 2020]. Usually, prices are set the marketplace forces (where supply and demand meet) But there are numerous motives governments may also want to interfere in a free marketplace to set prices. Make a few items extra expensive (e.g., meals to growth sales of farmers or discourage demand for demerit items. Make a few items cheaper (e.g., to ensure housing is affordable. To stabilize prices (e.g., save you speedy uctuations withinside the rate of meals]. However, the price of oil is mainly affected by Crude Oil Exports, Oil rent, Production Costs: Alternative Methods of Crude Oil Extraction, regional unemployment, and currency valuation (Russell Shor, 2015}