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CIMAPRA17-BA1-1 Exam - Topic 3 Question 122 Discussion

The existence of a natural rate of unemployment means that
D) there is no trade-off between inflation and unemployment in the long run.
A) the short run Phillips curve is steeper that the long run Phillips curve.
B) nominal wages rise faster the prices in the long run.
C) governments cannot reduce unemployment below this level.

CIMAPRA17-BA1-1 Exam - Topic 3 Question 122 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 122
Topic #: 3
[All CIMAPRA17-BA1-1 Questions]

The existence of a natural rate of unemployment means that

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Suggested Answer: D

by Hollis at Mar 02, 2026, 03:57 PM

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Antonio
3 days ago
I agree, C makes sense. It's like a limit we can't cross.
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Julie
8 days ago
I think the answer is C. Governments can't push unemployment lower than the natural rate.
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Elise
13 days ago
True, but I still lean towards C. It's about sustainable levels.
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Marti
19 days ago
But D sounds good too. No long-term trade-off, right?
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Moon
24 days ago
I agree, C makes sense. It's like a natural limit.
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Corrina
29 days ago
I think C is the best answer. Governments can't push unemployment lower permanently.
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Emmanuel
1 month ago
I’m not sure. B feels off. Wages and prices don’t always align.
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Elinore
1 month ago
A seems right too. Short run vs long run dynamics matter.
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Chauncey
1 month ago
I lean towards D. No long-term trade-off makes sense.
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Cammy
2 months ago
I think C is the best choice. Natural rate limits government actions.
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Tiffiny
2 months ago
B seems off, I don't see wages rising faster than prices long-term.
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Layla
2 months ago
A is correct, the short run curve is indeed steeper!
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Dong
4 months ago
Wait, are we sure about this natural rate thing? Sounds fishy.
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Pilar
4 months ago
I think D makes more sense, there’s always a trade-off!
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Shelton
4 months ago
C is definitely true, can't push unemployment below that level.
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Art
4 months ago
D makes sense, long-term trends show no trade-off.
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Robt
4 months ago
A is correct, the short run curve is indeed steeper.
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Olen
4 months ago
Wait, so there's no trade-off in the long run? That's surprising!
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Louvenia
5 months ago
I disagree, I think governments can still make a difference.
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Val
5 months ago
C is definitely true, can't push unemployment below that rate.
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Dannette
5 months ago
I vaguely recall something about the Phillips curve being different in the short run versus the long run, but I can't remember if that makes A or D correct.
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Ethan
5 months ago
I'm not entirely sure, but I feel like the natural rate means we can't just keep pushing unemployment lower without consequences, which might support C again.
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Antonio
5 months ago
I remember discussing the Phillips curve in class, and I think D makes sense because it talks about the long run, where inflation and unemployment aren't really linked anymore.
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Filiberto
5 months ago
I think the natural rate of unemployment suggests that there's a level we can't go below, so maybe C is right?
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