Thank You . got it!
You’re welcome.
Good to hear.
I saw the link. Thanks for the help. Coming to the point- Why does the LM curve shift to the right when P increases? I think it should shift vertically downwards. Why is there a shift to right? Also, how is Y/V real money supply?
My pleasure.
First, I think you have it backwards: when P increases, then M/P is lower: the curve is moving _ up _ (or to the left); when P _ decreases _, then M/P is higher: the curve is moving _ down _ (or to the right).
However, when P decreases, it’s better not to think of the curve as shifting to the right – real GDP doesn’t change simply because prices decrease – it’s better to think of the curve as shifting _ down _. (I know: for an upward-sloping line they amount to the same thing, but you should understand the mechanism for the line’s movement: it’s down, not to the right. If you read what is in the link, it does say that the curve shifts downward; it never mentions “to the right”.) When P decreases, prices are lower, so demand for money is lower, but the supply of money hasn’t changed. To boost the demand for money back up to its old level (to match the supply of money), interest rates are lowered. Thus, the curve moves down: lower interest rate for the same level of real GDP when prices are lower.
Real (annual) GDP (Y) is $1,000,000, and each (real) dollar is spent 10 times per year (V): so there must be Y ÷ V = $1,000,000 ÷ 10 = 100,000 (real) dollars floating around; that’s the money supply.
Brilliant, as usual. Thanks 
You’re welcome.