Answer to Question #111109 in Macroeconomics for zukile

Question

The cost of production in the South African (SA) economy accelerated, due to rising prices of electricity and petrol in the country, which led to an increase in the prices of domestic goods and services relative to foreign goods and services. This will likely lead to a (n)...
1.Increase in the net export and aggregate spending in the South African economy.
2.Inrease in the demand South African goods by foreign countries.
3.Increase in the quantity of goods and services demanded in the South African economy.
4.Decrease in the quantity of goods and services demanded in the South African economy.

Answer 1

4.Decrease in the quantity of goods and services demanded in the South African economy.