CIMA Exam CIMAPRA17-BA1-1 Topic 3 Question 107 Discussion

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

Question #: 107
Topic #: 3

[All CIMAPRA17-BA1-1 Questions]

Government X has just increased taxes in order to limit spending and hence demand.

Which of the following is most likely to have been the cause of this fiscal policy?

AAn inflationary gap, where demand outstrips output

BA drop in prices caused by other fiscal policy instruments, e.g. a reduction in business taxes

CThe attainment of full employment within the economy

DThe contraction of the national economy

Show Suggested Answer

Suggested Answer: C, D, E

by France at Feb 10, 2025, 04:15 PM

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2 days ago

I think it could be because they want to limit spending and control demand.

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4 days ago

I disagree, I believe it was due to the contraction of the national economy.

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10 days ago

I think the government increased taxes because of an inflationary gap.

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