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

Athe short run Phillips curve is steeper that the long run Phillips curve.

Bnominal wages rise faster the prices in the long run.

Cgovernments cannot reduce unemployment below this level.

Dthere is no trade-off between inflation and unemployment in the long run.

Show Suggested Answer

Suggested Answer: D

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

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Louvenia

24 hours ago

I disagree, I think governments can still make a difference.

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Val

6 days ago

C is definitely true, can't push unemployment below that rate.

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Dannette

11 days 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

16 days 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

22 days 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

27 days 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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