What does an increase in a nation's total output over time signify?

An increase in a nation's total output over time signifies economic growth. Economic growth refers to the rise in the quantity of goods and services produced by an economy over a certain period, typically measured by the increase in real GDP (gross domestic product). When a nation's total output expands, it indicates that the economy is achieving higher levels of productivity, efficiency, and overall prosperity, which can result from factors such as technological advancements, increased capital investment, and improvements in labor productivity.

This concept is key to understanding the health and dynamism of an economy. Economic growth can lead to higher employment rates, increased income levels, and improved standards of living for the population. It is also essential for a country to sustain its ability to invest in infrastructure, education, and health, enabling future growth.

In contrast, the other options do not accurately reflect what an increase in total output represents. A decrease in gross domestic product would indicate a contraction of the economy, while economic interdependence refers to the ways in which countries are connected through trade and finance, rather than focusing solely on output. Lastly, the expansion of the possibilities curve is a concept that illustrates the maximum production capabilities of an economy but does not directly measure total output over time.