"In normal crises, policymakers try to encourage economic activity by stimulating aggregate demand as quickly as possible. This time, the crisis is, to a large extent, the consequence of needed containment measures," the IMF stated. "This makes stimulating activity more challenging and, at least for the most affected sectors, undesirable."                                                                                                     (CLO 3)

Clearly outline a novel measure that the Government of Jamaica has used to stimulate aggregate demand during the pandemic

 Key policy responses to stimulate aggregate demand in Jamaica

 To counteract the effects of COVID-19 pandemic, the Jamaican Minister of finance announced tax cuts of approximately 0.6% of the GDP. The target measure was 0.5% of the GDP. The tax cuts will be financed by asset divestment which is ongoing. To support the most adversely affected sectors by the virus, additional measures such as custom duty waivers on medical supplies have been instituted.

Jamaica has instituted the COVID-19 allocation of resources for employees (CARE) program. The program envisages temporary cash transfers to business in target sectors depending on the number of workers employed. Cash transfers to workers who lost their source if employment since March 2020. Also, the program instituted grants to the most vulnerable people in the society. The minister of finance tabled supplementary budget for FY2020/21 that aims at targeting 3.5% of the GDP (primary balance) to account for revenues shortfalls and to compensate for spending re allocations due to COVID-19.