Assume the United States economy is currently at equilibrium

1. using a correctly labeled aggregate demand and supply graph, show full employment (Y) and current price level (PL1)
2. World war 111 breaks out and the U.S has to get involved. The president to increase the military budget by 40%. On your graph from #1 show what will happen to the economy, labeling the new equilibrium as Q2, PL2
3. Using a correctly labeled graph of the loanable funds market, show how the President's decision will affect the economy