Government transfer payments act as automatic stabilizers because as labor income decreases, transfer payments

	a.	decrease as well.
	b.	increase.
	c.	to the government increase.
	d.	remain constant.

For liberals, the United States has a(n)

	a.	public sector that is too small.
	b.	private sector that is too small.
	c.	public sector that is too large.
	d.	economy that is too heavily regulated.

Ronald Reagan's presidency could be characterized as a period of

	a.	passive monetary policy.
	b.	active regulatory policy.
	c.	passive fiscal policy.
	d.	active fiscal policy.

The reason that the multiplier is smaller if there are variable taxes is that

	a.	tax increases shift the expenditure line upward.
	b.	taxes add to government spending, which increases income.
	c.	people get angry about taxes and decide to work less.
	d.	part of an increase in income is taken away in taxes.