b) With reference to the AD-AS model in part a), explain the process by which self-correction takes places to restore the economy's natural level of output. Do not exceed 200 words and state the number of words you use in your answer. c) Illustrate the scenario from parts a) and b) to show the impact on ination and unemployment using the Philips Curve. Be sure to label your diagram and indicate the corresponding points a) and b) on your diagram. Part (132 Assume the MAS implements a tight monetary policy. Consider the impact this will have on international capital flows. Your answer for parts a), b) and 0) should not exceed more than 300 words in total. a) Explain how monetary policy can inuence international capital ows. b) Illustrate the impact from this scenario. ceteris paribus, to show how Singapore's equilibrium exchange rate may be impacted. c) Discuss implications for Singapore's economy, ceteris paribus, resulting from a change in the equilibrium interest rate identied in part b)