Assume the Canadian economy is currently at equilibrium. a. Using a correctly labeled aggregate demand and supply graph, show Full employment output (yf)    Current price level (PL1)    b. World War III breaks out and Canada has to get involved. The Prime Minister chooses to increase the military budget by 40%. On your graph from part A, show what will happen in the economy, labeling the new equilibrium as Q2, PL2. c.  Using a correctly labeled graph of the loanable funds market, show how the Prime Minister’s decision will affect the economy.

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A: Since F part is missing, we'll be answering only C and D. Please resubmit the question with F part