If Total Spending Rises from One Year to the Next,then

question 13

Multiple Choice

If total spending rises from one year to the next,then which of the following could not be true?

• A)the economy is producing a smaller output of goods and services,and goods and services are selling at higher prices.
• B)the economy is producing a larger output of goods and services,and goods and services are selling at lower prices.
• C)the economy is producing a larger output of goods and services,and goods and services are selling at higher prices.
• D)the economy is producing a smaller output of goods and services,and goods and services are selling at lower prices.

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Definitions:

Competing Firms

Companies that operate in the same industry and vie for the same consumer base or market share.

Food Products

Items derived from agriculture or animal farming that are intended for consumption.

Technological Advances

Improvements in technology, leading to more efficient production processes or innovative products.

Information Technologies

The use of computers, software, and telecommunications to store, retrieve, transmit, and manipulate data, often in the context of business operations.