The amount by which aggregate spending at full employment exceeds full employment output is known as the:

The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. However, sellers can switch to selling lemons at lower costs

Which of the following statements is TRUE? A) Only lemons are sold for $1,600. B) Only lemons are sold for $800. C) All the sellers of good cars will switch to selling lemons. D) 40% buyers will get lemons.

Which of the following causes a decrease in demand for a normal good?

A) increase in price of a substitute B) increase in price of a complement C) increase in price D) increase in income