In 2007, farmers in Peru protested against the decision by the government to approve the opening of a large copper mine by a transnational company. The farmers claimed that the mine would damage the local environment and destroy their way of life.
This can be interpreted as evidence that
A. there is a choice between different macroeconomic policy instruments
B. the long-run aggregate supply curve in Peru is vertical
C. there is a conflict between macroeconomic policy objectives
D. the government is sacrificing future investment in favour of current consumption
(a) Answer
(b) Explanation
*Source: IAL Ec