figure below. AD is the aggregate demand curve, LAS is long-run aggregate supply curve, and SAS is short-run aggregate supply curve. diagram 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: a. 150 b. 100 c. 130 d. 120 e. We cannot tell without more information on wage negotiations