The Thai economy is at its potential level. Illustrate and explain the impact of the Covid-19 pandemic on Thailand using the IS-LM-PC model. Besides the Bank of Thailand reduced its policy rate, the...

The Thai economy is at its potential level. Illustrate and explain the impact of the Covid-19 pandemic on Thailand using the IS-LM-PC model. Besides the Bank of Thailand reduced its policy rate, the Thai government has recently announced a massive stimulus package of 1.9 MM baht. Use the IS-LM-PC model to show the effect of these policies on Thai economy. Draw the graph and explain. Suppose that the 1.9 MM baht stimulus package does not sufficient to support the Thai financial system and also leads to the government debt crisis. What would happen to the Thai economy? Draw the graph and explain using the IS-LM-PC model