"Insufficient Space" error preventing app download from App Store for MacBook Air 2013

Hi,
I am using a MacBook Air 2013 model with OS 10.9.4 (Mavericks).  It has a 120 GB HD with about 17 GB of free space.
I am unable to download from the Mac App Store as I get an 'insufficient space available" error whenever I try to purchase a larger App (> 2 GB).
After looking through the forums I can confirm the following:
- Both the Finder and "About This Mac" report that 16.5 GB of space is available.
- I have toggled Time Machine and restarted my computer with it "On" and "Off".
- The application description does not mention needing more space for installation (specifically I am now trying to download BioShock 2 which needs about 9 GB).
I tried to contact Apple Support for the App Store and they informed me it was a hardware issue.  I do not have Apple Care and do not think this is a hardware issue so would rather not pay the 20$ for support.
Cheers,

If you're trying to add a large amount of data all at once, and you get an alert of insufficient space, then from the menu bar, select
           ▹ System Preferences... ▹ Time Machine
If the padlock icon is closed, click it to unlock the settings and authenticate. Turn Time Machine OFF, then back ON and close the preference pane. Restart the computer. Test.

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