In each period t there are new nodes and edges that join the network while the old ones disappear.

Now suppose, as before, that autonomous investment rises to £510 in period t + 1.

A period T is the time required for one complete cycle of vibration to pass a given point .

At the end of period t prices are then set for period t + 1, and so on.

McCallum assumes that firms set their prices for period t in the following way.

At the time they agreed the contract, period t -1, it appeared optimal to trade y n if the price level was P.

This may be rearranged to produce an equation determining price in period t,.

We may define the total value of the firm's equity in period t + 1 as.

We wish to determine the period T of small oscillations in a simple pendulum.

So assume someone buys a $1 bond in period t while the interest rate is .