The Dutch Disease Refers to

question 25

Multiple Choice

The Dutch Disease refers to

• A) The impact on non-tropical diseases on economic growth in Europe
• B) High levels of unemployment
• C) The impact of natural resource extraction on other export industries and economic growth
• D) Weak institutions and their impact on growth
• E) all of the above

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Definitions:

Price Level

An index that measures the average changes in prices received by domestic producers for their output, affecting the purchasing power of money.

Cost-Push Inflation

An inflationary trend that results from an increase in the cost of production, leading to a decrease in supply and an increase in prices.

Demand-Pull Inflation

Inflation that occurs when aggregate demand in an economy outpaces aggregate supply, leading to an increase in prices.

OPEC

The Organization of Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations, aiming to manage the supply of oil in an effort to set the price on the world market.