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Two-stage cooling utilizes a multi-, or two-speed compressor. A high-stage demand from the thermostat will cause the compressor and circulating fan to operate at 100% cooling capacity and the indoor fan to operate at the high-speed setting.. A low-stage demand from the thermostat will result in a speed reduction at both the compressor and indoor unit circulating fan. Two-stage cooling generally results in extend operation at low speed removing more moisture from the structure, providing more comfort and using less electricity than single-stage systems.