If consumers and businesses became more pessimistic about the future of the economy, the government could try to stabilize output by

		increasing government expenditures. The primary objection to this is that an increase in government expenditures have no impact on the economy.
		increasing government expenditures. The primary objection to this is that there are lags in implementing fiscal policy.
		increasing government expenditures. The primary objection to this is that an increase in government expenditures have no impact on the economy.
		increasing government expenditures. The primary objection to this is that there are lags in implementing fiscal policy.

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