In the above table, the efficient level of output is

One way the "lemons problem" in the used-car market can be mitigated is by

a. raising the price of used cars. b. hiring auto experts to sell used cars. c. requiring sellers to guarantee trouble-free cars. d. allowing owners to trade in their own cars when they purchase a used car.

Incorporation of expectations into economic decision making indicates that in the long run:

a. inflation relates directly to unemployment. b. inflation is inversely related to unemployment. c. the Phillips curve is vertical at the natural rate of unemployment. d. high unemployment is a primary cause of inflation.