Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year

According to the above table, a surplus exists when

A) the price is $1 per unit. B) the price is $2 per unit. C) the price is $3 per unit. D) the price is greater than $3 per unit.

Those who accept both the rational expectations hypothesis and the assumption of flexibility of wages and price would likely argue that

A. if policy makers are willing to accept a high inflation rate, they can reduce unemployment to a point below the natural rate. B. policy makers can eliminate fluctuations in the level of business activity with careful planning of a widely publicized monetary policy. C. saving and investment do not contribute to economic growth. D. active policy making does not contribute to economic stability.