Assume that the government is considering different policies to increase total expenditures in order to reduce unemployment. Which of the following would achieve this objective?

If marginal cost is less than average variable cost and output increases, average total cost ________ and average variable cost ________

A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases

A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand

Indicate whether the statement is true or false