With the following problems, we begin to integrate the 3-sector model. These problems follow from Martinsen, chapter 18 and review many of the concepts from previous chapters. For each economic condition, insert a new supply and/or demand curves. Below the graph, state the change in endogenous variables: increase, decrease, or unchanged. Carefully note the market(s) analyzed in each problem. 6 In response the recession, the federal government borrows funds to increase spending engaging in expansionary fiscal policy. Cost of Real Credit S D RC Answer for r and RC: 7 7 The federal government increases spending to mitigate a recession. P AS AD RGDP Answer for P and RGDP