In which of the following years would increasing G be appropriate fiscal stabilization policy?

Year u/u*

1. 8%5%

2. 5%5%

3. 3.50%5%

4. 5%5%

a.

In year 1 only.

b.

In all four years.

c.

In year 3 only.

d.

In years 1 and 3.

e.

In years 2 and 4.