The problem of asymmetric information that brings about a general decline in product quality in an industry is

The quantity of real GDP demanded on the AD curve is the equilibrium real GDP when

A) equilibrium expenditure is greater than real GDP. B) aggregate planned expenditure equals real GDP. C) the price level equals the equilibrium price level. D) aggregate planned expenditure is greater than real GDP. E) aggregate planned expenditure is less than real GDP.

In the above figure, if the market produces the efficient amount of purses then producer surplus equals

A) triangle bcd. B) triangle adc. C) rectangle bcde. D) trapezoid adec.