1.3 South Africa trades with the UK. Explain the effect of each of the following events on...

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1.3 South Africa trades with the UK. Explain the effect of each of the following events on South Africa’s aggregate demand.

◆ The government of South Africa cuts income taxes.

◆ The UK experiences strong economic growth.

◆ South Africa sets new environmental standards that require power utilities to upgrade their production facilities.

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