1.3.1 "There is an anticipated lowering in government spending since the Thai government accumulates more public debt."

Given this situation, how should an adviser with a belief in assumptions under the New Classical system make suggestions regarding the implementation of other stabilization policy? Also, draw two graphs, the labor market, and the AD-AS diagram, and specify assumptions used to support your answer.

1.3.2 Based on the following RBC assumptions,

• Explain the trade-offs faced by a representative agent. Discuss how a negative shock, natural disaster, to technology (z_t) causes the persistence of fluctuation in the level of output. Also, draw a diagram of production function to support your answer.