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A prime example of the negatives effectives of "Path Dependency" is the QWERTY keyboard layout, which persists in usage despite there being far more efficient ways to organize a keyboard. Path Dependency can also be used to maintain a sustainable competitive advantage. Identify a firm and product, other than Apple, that has used path dependency to its advantage and discuss how this was accomplished.

Use Microsoft as the company.
If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

the multiplier is probably equal to one.

the multiplier is probably less than one.

the multiplier is probably zero.

the multiplier is probably greater than one.
The interest-rate effect

is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.

depends on the idea that decreases in interest rates increase the quantity of goods and services demanded.

is responsible for the downward slope of the money-demand curve.

depends on the idea that decreases in interest rates decrease the quantity of goods and services demanded.
1. The amount of consumption in an economy depends:
A. Inversely on the level of disposable income
B. Directly on the level of disposable income
C. Inversely on the level of saving
D. Directly on the rate of interest
consider a hypothetical economy where autonomous C ,autonomous I,autonomous G,autonomous TR ,mpc and t iss given
calculate the level of autonomuous expenditure,equilibrium income,consumption ,total taxes and multiplier
Which is the correct multiple choice answer?

The GDP deflator is not suitable as a measure of household inflation because,
a) it does not include intermediate goods
b) it does not include primary products
c) it does not include changes to the prices of imported final goods
d) it focuses on the costs of production, not costs of consumer goods
e) GDP is used to measure household welfare
If the US government has heavy spending would this massive spending cause 1) the real wage to rise 2) the nominal wage to rise 3) both 4) neither
Suppose equilibrium GDP is less than full-employment output and the economy is in a recession. What are the appropriate fiscal policies that would take the economy to full employment level?
Increase taxes
Decrease government spending
Lower transfer payments
Decrease taxes
GDP (bill.)
Index (GDP deflator)
GDP (bill.)

Year 1

Year 2

(ii) Between Year 1 and Year 2, the price level has___ increased/decreased by ____%
Suppose a country institutes an investment tax credit, and this leads to an increase in investment
spending of $100 billion. Suppose the multiplier is 1.5 and the economy’s real GDP is $5,000 billion.
A. In which direction will the aggregate demand curve shift and by how much?
B. Explain using a graph why the change in real GDP is likely to be smaller than the shift in the
aggregate demand curve