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What are the structural forces that affect the natural rate of unemployment? These occur in the labor and product markets. When money supply increases ( which means that spending also increases ), producers are following the trend that both prices and costs also rises.
What affects the labor markets?
When work is available to the aspiring public, it is in the level of work efficiency that attracts people to earn more. Thus,
raising the potential to a stable velocity of money.
What affects the product markets?
When quality of goods is easily detectable ( or seen ) via extreme advertising ( or promotion ). It is in the production capacity that elevates prices of goods to be affordable. Thus, rendering the quantity of real output to be stable. In effect, the relative increase in aggregate demand eventually ( directly ) posts a rise ( correspondingly ) in the price level. Economist will surely agree on this outlook.
