How can government stimulate economy?

The most common thing the government can do to stimulate economy is lower interest rates. There can also be tax cuts, both these options are good for helping people get a few extra bucks in their pockets, with hopes of them spending it and getting more money flowing in the economy.

Because economic stimulus consists of attempts by governments or government agencies to financially stimulate an economy. A economic stimulus is the use of monetary or fiscal policy changes to kick start growth during a recession.