Question

If total spending rises from one year to the next, then a. goods and services must...

If total spending rises from one year to the next, then

a. goods and services must be selling at higher prices.
b. the economy must be producing a larger output of goods and services.
c. either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both.
d. employment or productivity must be rising
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Answer #1

Option C

Explanation: Total spending can increase when the country is producing more goods and services. Also, total spending can increase when there is a increase in the price of goods or services. Moreover, total spending can increase when both these events occur together.

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