Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

1. Consider the model on page 178 stated below: Look now in the second paragraph of page 191 under Numerical Example to see how one can derive the AD curve. As its 3 rd line says, "setting the ...

1. a) In the year of the shock, the price level, being a predetermined variable, will stay at 1. Therefore, the real money supply will also stay constant and be M/P= 90011=900. To calculate the new ...