Page 2 of 7- In period of recession, the Federal Reserve should do: a) An Open Market Sale b) An Open Market Purchase c) A Neutral Open Market d) All of the above 8- According to the theory of Comparative Advantage, a country should produce and: a) Import goods in which it has an absolute advantage b) Import goods in which it has a comparative advantage c) Export goods in which it has an absolute advantage d) Export goods in which it has a comparative advantage B- Last month Sandy could buy more goods in Japan with her American Dollars than now. We can say that now the American Dollar has: a) Depreciated with respect to the Japanese Yen b) Appreciated with respect to the Japanese Yen c) Has a reflective value d) None of the above 10- In the Circular Flow Model, a) Money flows from the firms to the households through the product market b) Money flows from the households to the firms through the product market c) Money flows from the households to the firms through the resource market d) Resources flow to the household from the firms through the product market 11- Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for jobs, and 15 of whom are retired. The number counted as unemployed is: a) 10 b) 15 c) 40 d) 30 hp