When positive spending shocks occur, transfer payments automatically fall

Suppose a patent is granted for a product that has the linear demand curve P = a - b Q. The constant marginal cost of producing this product is $50 per unit, a unit sells for $150, and consumers purchase 100 units of the good at that price

If the monopoly is maximizing profit, b equals A) 1. B) 1.5. C) 2. D) 2.5.

According to the rational expectations hypothesis, individuals form their expectations about future values of economic variables by all of the following EXCEPT

A) past information. B) current information. C) their understanding of how the economy operates. D) formal models of macroeconomics.