economics

stimulus

Government spending or tax cuts designed to boost economic activity during a slowdown.

Example

"The government issued stimulus checks to households to boost consumer spending during the recession."

💡 Memory Tip

A stimulus STIMULATES — like a shot of energy for the economy.

Etymology

From Latin 'stimulus' meaning 'goad, spur' — spurring the economy into action.

Common Misspellings

stimulisstimulasstiumulusstimulas

Related Terms

fiscal policyquantitative easingrecessiongdp

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