is called 7. The divergence of the skills of unemployed workers and the skills required by the job market A. frictional unemployment. B. structural unemployment. cyclical unemployment. D. compositional unemployment. 8. When we draw an investment demand curve, we hold constant all of the following except A. consumption. B. inflation rate the stock of capital goods D. the interest rate. 9. Inflation initiated by increases in wages or other resource prices is labeled A demand-push inflation. B. cost-push inflation. C. demand-pull inflation. D. cost-pull inflation. 10. Cost-push inflation may be caused by A. a negative supply shock. B. a decrease in wage rates. C. an increase in resource availability. D. a decline in per-unit production costs. 11. If the actual rate of unemployment is above the natural rate of unemployment, then potential GDP is A. less than actual GDP. B. equal to actual GDP. C. equal to the GDP gap. D. greater than actual GDP. 12. If the MPS is 0.25 and the economy has a recessionary expenditure gap of $5 billion, then equilibrium GDP is $20 billion below the full-employment GDP. B. $5 billion above the full-employment GDP. C. $5 billion below the full-employment GDP. D. $20 billion above the full-employment GDP