A. The negative impact of a natural resource boom on the manufacturing sector through currency appreciation
B. The positive impact of resource discovery on all sectors
C. A disease affecting agricultural productivity
D. Only the impact of oil prices on inflation
Answer: Option A
Solution (By JKSSB Mock Tests)
Dutch Disease describes the phenomenon whereby a boom in the natural resource sector leads to real exchange rate appreciation, making the manufacturing and other tradable sectors less competitive.
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