If aggregate expenditure is more than GDP, then inventories fall and GDP rises.
Indicate whether the statement is true or false
Question 2
Why are laws aimed at regulating monopolies called antitrust laws?
A) Trust was a word in Old English that meant monopoly in the Middle Ages. Therefore, antitrust is a term that means against monopoly.
B) In the late 1800s, firms in several industries formed trusts; they were called trusts because when corporate officials were questioned about their business they would clam that business was good for the country and that they should trusted.
C) The rise of large firms (e.g., Standard Oil) in the late 1800s in the United States caused consumers to lose trust in private business.
D) In the late 1800s, firms in several industries formed trusts; the firms were independent but gave voting control to a board of trustees. Antitrust laws were passed to regulate these trusts.
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