If the reserve requirement were cut in half, the banking system’s ability to extend loans would be

When the production of a worker is relatively easily observable, the firm can pay a piece-rate

Indicate whether the statement is true or false

The short-run Phillips curve shows that as the unemployment rate goes down, _____

a. unemployment benefit payments go up b. prices go down c. the Phillips curve shifts outward d. the inflation rate goes up e. there is no change in the rate of inflation