7. One argument against using fiscal policies to smooth fluctuations in the business cycle is that their long lags may end up causing more harm than good.

Which of the following supports this argument?

There is always uncertainty over exactly how much to expand or contract spending.

The effects of fiscal policy on the short‑term business cycle are independent of time.

Not using fiscal stimulus during a recession may have long-lasting negative effects.

If fiscal stimulus kicks in during a recovery, it may create inflationary pressures.