Suppose a war begins, and government adds millions of soldiers to the armed forces.As a result,

a. Aggregate demand decreases, decreasing output and inflation.

b.Aggregate supply decreases, decreasing output and decreasing inflation.

c.Aggregate supply increases, increasing output and decreasing inflation.

d.Aggregate demand increases, increasing output and inflation.

Suppose the supply of the dollar increases in the exchange market.According to the macroeconomic model, what happens in the exchange and goods markets?

a.The exchange value of the dollar decreases, which increases aggregate demand, raising output and inflation.

b.The exchange value of the dollar increases, which decreases aggregate demand, reducing output and inflation.

c.The exchange value of the dollar increases, which increases aggregate supply, raising output and reducing inflation.

d.The exchange value of the dollar decreases, which decreases aggregate supply, reducing output and raising inflation.

Suppose the demand for the dollar increases in the exchange market.According to the macroeconomic model, what happens in the exchange and goods markets?

a.The exchange value of the dollar increases, which raises exports and reduces imports, increasing aggregate demand.

b.The exchange value of the dollar decreases, which raises exports and reduces imports, increasing aggregate demand.

c.The exchange value of the dollar decreases, which reduces exports and raises imports, decreasing aggregate demand.

d.The exchange value of the dollar increases, which reduces exports and raises imports, decreasing aggregate demand.