Powell said a reduction of violence in the Middle East would boost economic activity in the West Bank and Gaza.

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Some press speculation has already posited that the change is being made to boost economic activity by reassuring the public and markets that low rates will prevail for a long time.

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This is our old friend, "helicopter money", which Wadhwani believes could help boost economic activity without causing serious problems for inflation. (In fact, he first proposed this with another economist Michael Dicks in 2011).

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Since September, the government has taken several measures to boost economic activity, such as allowing foreign supermarket chains to set up shop in India, permitting foreign airlines to buy stakes in local carriers and raising the state-regulated prices of some fuels.

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Almost two years into its five-year boost, there are signs of economic activity in Sauri as well.

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"The government's massive fiscal boost may prevent the downturn in economic activity being as severe as would otherwise be the case but it will not prevent a sharp jump in unemployment over the coming year, " said Simon Rubinsohn of the Royal Institution of Chartered Surveyors (Rics).

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Stimulus is designed to promote economic activity, create jobs, and boost asset prices.

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Economic activity is expected to receive a boost from accelerated approval of public infrastructure projects, the IMF said on Tuesday.

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