how can i increase military power and economic power

Well, the short answer is that you need gold, population and resources so that you can increase the size of your army. The navy mostly matters if you are Great Britain or if you're gearing up to invade the British Isles.

In the short term, you can increase your income by converting research points into gold. Do this by clicking on the icon at the top of the main screen showing your current research project (this is just to the left of the treasure chest); this takes you to the research screen. At the top of that screen, again next to the treasure chest is a green bar with a beaker. Click that and you can turn RPs into gold. This is a stop-gap though, as you don't want to fall behind in research. I use this early on for extra money - mainly to build up my trade and construct improvements - but only after I've researched the basics (food preservation, hospitals, saw mills, barracks and stables).

Improvements should generally be built in your capital first, as it'll always (or almost always, I can't recall about Prussia) produce more men, raw materials and food than any of your others.

When setting up trade, concentrate on getting routes set up that connect to other routes. That way the trade branches (IIRC, that's the first trade building) are trading not only with your capital, but also with each other (so French posts in Hannover and Batavia means three routes instead of two). The same rule applies to sea routes.

Population is the rough one, since you can't buy it. The only things you can do are to get hospitals up quickly and (when contemplating a minor power to take over peacefully or by conquest), go for the ones with a big population stockpile.

Once you've got a decent income and good resources, it isn't difficult to build up the army. (It's made easier/faster if you have more than one place to recruit, of course). Make sure to stay in defense pacts to discourage other states from attacking. Good choices are ones that make one border safe or that threaten the guy you're worried about (for example, Russia allies with Sweden so the northern border is covered and with Prussia and Moldavia to keep Austria in check - now Russian troops can attack the Ottomans). Coalitions serve the same purpose, but are obviously more aggressive - they're good for threatening another of your target's frontiers (or his allies) and also your partner can't attack you while the Coalition is in effect.

Hopefully that's of some help.

My Military Power isn't increasing
(The Graph with Glory Points = Territories Held, Territories Conquered, Military Power, Economic Power, Battles Won, Quests Completed)
How can i increase Military Power?

I believe for Military and Economic Power it just assigns points for first, second and third place, so a larger military and/or better troops will improve your position. Economic power may include resource boosters (sawmills, etc.) as well as your gold income, but I'm not sure.

Thank You Techromancer for the Help!