Definition of Economic Stimulus
What does the term "economic stimulus" mean? What is meant by the term "economic stimulus"?
Economic stimulus refers to the actions that a government can take to try and stimulate growth in an economy.
For instance - let's say that a country is currently in the midst of a recession after a long period of economic growth.

The risk in utilizing economic stimuli is that a country runs the risk of inflation if it uses too much. It is a delicate balancing act that governments must perform - not enough stimulus vs too much stimulus.
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