Compared to fiscal policy, monetary policy has a much shorter:

Using productive resources to make capital goods requires that we

A) get everyone to agree on the best use of those resources. B) get government approval of our plan to make capital goods. C) forgo some level of current consumption. D) prove that the existence of the capital goods will not cause any environmental damage.

A logical explanation for recessions might be that households have suddenly altered their willingness to work. A problem with this explanation is

a. it is inconsistent with patterns of job searches during recessions b. the demand for labor rarely shifts c. the large number of women who entered the labor force in the last four decades d. it is inconsistent with the classical model e. the work ethic that is responsible for the decline in American vacations