Explain how the following step taken by the government of the country will affect the output in the short run in their country (using the same IS-LM framework):

China's government exempted the micro, small and medium-size enterprises from making employer contributions to pension and work-related injury insurance schemes. Also, allowed the larger enterprises to reduce the same by 50%. (Hint: It will have a direct impact on the cost of employment, or can say will ease enterprises' cash-flow constraints.)