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CIMAPRA17-BA1-1 Exam - Topic 1 Question 5 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 5
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?

AA fall in domestic interest rates

BSignificantly lower labor costs available in a developing country

CImprovement in the terms of trade

DExcess aggregate demand in the economy of a trading partner

Show Suggested Answer

Suggested Answer: C

by Mitsue at May 09, 2022, 12:15 AM

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Carissa

7 months ago

Totally agree, excess aggregate demand can lead to job losses too!

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Ahmed

7 months ago

Improvement in terms of trade doesn't really cause cyclical unemployment, right?

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Benedict

8 months ago

Isn't it surprising that interest rates can impact unemployment so much?

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Herminia

8 months ago

I think lower labor costs in developing countries are a bigger factor.

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Marvel

8 months ago

A fall in domestic interest rates usually boosts demand!

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Joaquin

8 months ago

I'm a bit confused on the best approach here. Should we build a custom search functionality or implement an MDM solution? I'm not sure which option would be more effective in this scenario.

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Jesusita

8 months ago

I'm not totally sure about this one. The concepts seem similar, but I'm not confident I can distinguish them well enough to pick the right answer. I'll have to guess and hope for the best.

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