Question

''What is meant by the “natural rate of unemployment”? Using diagrams show what happens to the natural rate of unemployment if there is an increase in firms’ price mark up. What is the effect on the supply function?''
can anyone please show me how to draw the diagram because i'm really confused on what should i draw

Answer 1

The natural rate of unemployment is a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium.
The increase in this rate decreases supply and vice versa.
Sources:
https://en.m.wikipedia.org/wiki/Natural_rate_of_unemployment