Answer to Question #109348 in Macroeconomics for Philip

Question

The cost of production in the South African economy accelerated, due to rising prices of electricity and petrol in the country, which led to an increase in the prices pf domestic goods and services related to foreign goods and services. This is likely to lead to a... 1. increase in the net export and aggregate spending in the SA economy. 2. increase in the demand of SA goods by foreign countries. 3. increase in the quantity of goods and services demanded in the SA economy. 4. decrease in the quantity of goods and services demanded in the SA economy.

Answer 1

Correct answer is: 4. decrease in the quantity of goods and services demanded in the SA economy.