5. The cost of living … Every year things are dearer. 6. George has gone to work in Spain. When he arrived, his Spanish wasn’t very good but now it … 7. The economic situation is already very bad and it … worse.

Видимый фрагмент не содержит инструкции и глаголов-подсказок для пропусков, поэтому заполняю их подходящими по смыслу формами.

1. The cost of living is going up. Every year things are dearer. — Используется Present Continuous для обозначения происходящего изменения.
2. George has gone to work in Spain. When he arrived, his Spanish wasn’t very good but now it is getting better. — Форма is getting показывает постепенное изменение.
3. The economic situation is already very bad and it is getting worse. — Используется Present Continuous; перед сравнительной формой worse ставится getting.