An increment (or decrement) of employment is liable, however, to raise (or lower) the schedule of liquidity preference; there being three ways in which it will tend to increase the demand for money, inasmuch as the value of output will rise when employment increases even if the wage unit and prices (in terms of the wage unit) are unchanged, but, in addition, the wage unit itself will tend to rise as employment improves, and the increase in output will be accompanied by a rise of prices (in terms of the wage unit) owing to increasing cost in the short period.