Question

If total expenditure on goods and services increase from one year to another, then a. the economy’s output of goods and services must be larger. b. the prices of goods and services must be higher. c. either the economy’s output of goods and services is larger, or the prices of goods and services must be higher, or both. d. employment must be rising.

Answer 1

A. The economy's output of goods and services must be larger

Step-by-step explanation:

Since the total expenditure on goods and services is increasing each year, this indicates that the purchase of goods and services is increasing and this will lead to the economy increasing its output in order to meet up with demand of goods and services due to increase in total expenditure.