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According to economic theory, when troubled, economies grow too hot or a recession, the two main tools that the Government will rely on is (i) monetary policy-increase/decrease interest rates and some other measures to regulate the money supply in the economy and (ii) fiscal policy-tax policy and Government spending (such as the stimulus package). In economics, stimulus packages are usually understood as the use of fiscal policy (tax exemptions, raise government spending) to support the economy during the recession. The goal of the stimulus measures through fiscal policy is aimed at strengthening the economic activity in the period of recession by the increase of demand in the short term. The idea of economic stimulus packages is when increased spending will limit the ability of the bridge plummeting further causing crumbling economy. In the period of economic recession, the fundamental problems of the economy is the lack of demand, rather than the lack of production capacity. In normal conditions, the Government should have measures to help the long-term growth through enhancing the production capacity of the economy. However, when a recession, the stimulus package's goals is to create more demand for the current capacity of the economy, avoiding to excess production capacity at levels too high to cause waste of resources as well as causing social problems caused by rising unemployment. If not quickly stop, unemployment will reach dangerous thresholds of economic downturns push into the vicious spiral: unemployment will lead to cuts in income (actual and expected) reduces consumption, as do the difficulties of the output leads to businesses must continue to cut production and labor , pushing unemployment increased in the next round, and so on. So the biggest purpose of the stimulus package is to maintain employment
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