Everybody called it a lavish party.

The correct answer is: A. expensive.

A lavish party is a party that is characterized by its extravagance and expense. It is often held to celebrate a special occasion, such as a wedding or a birthday, and it can include lavish food, drinks, and entertainment.

The other options are incorrect because:

• Frugal means being careful with money and avoiding waste. A lavish party is not frugal because it is characterized by its expense.
• Wasteful means using more than is necessary or appropriate. A lavish party can be wasteful if it is not planned
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  carefully and if too much money is spent on unnecessary items.
• Big means large in size or extent. A lavish party can be big, but it is not necessarily big in order to be considered
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  lavish.

In conclusion, the correct answer to the question “Everybody called it a lavish party. A. expensive B. frugal C. wasteful D. big” is A. expensive.