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Refer to the figure below. AD is the aggregate demand curve, LAS is long-run aggregate supply curve, and SA5 is short-run aggregate supply curve. Price Level [GDP dellotor, 2002 = 1001 150 130 120 100 * The figure illustrates an economy initially in equilibrium at point A. if the quantity of money is expected to increase by 50 percent, what is the rational expectation of the price level? Select one: 0 2.150 b. 100 O C 130 O d: 120 e. We cannot tell without more information on wage negotiations.In a small open economy with flexible exchange rate, if the central bank lowers the overnight loans rate, other short-term interest rates and the exchange rate Select one: a fall, and the long-term interest rate rises, / falls b. do not change / falls c fall / does not change d. fall / rices O e. fall FfallsFor a given expected inflation rate, the higher the unemployment rate, the lower is the actual inflation rate. This relationship is the Phillips curve. When the expected inflation rate changes, this is shown as a movement along the _Phillips curve. Select one O a. short-run / long-run b natural / short-run O c long run / long-run O d. long-run/ natural Q e. short-run / short-run