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CIMA CIMAPRA17-BA1-1 Exam Questions
BA1 - Fundamentals of Business Economics (Page 3 )

Updated On: 15-Feb-2026
Page 3 of 95
PDF with 468 Questions

On an aggregate demand and aggregate supply diagram, cost-push inflation is shown by

  1. A leftward shift of the short-run aggregate supply curve
  2. A rightward shift of the aggregate demand curve
  3. A rightward shift of the long-run aggregate supply curve
  4. A leftward shift of the aggregate demand curve

Answer(s): A



Which of the following best defines "aggregate supply"?

  1. The stock of output available for sale in an economy
  2. The full employment level of output of the economy
  3. The flow of goods and services produced by an economy during the year
  4. The level of prices at which output can be sold in an economy

Answer(s): C



All of the following would lead to fall in the circular flow of national income except which one ?

  1. A fall in business investment
  2. A fall in personal savings rates
  3. A reduction in the level of government expenditure
  4. A rise in the marginal propensity to save

Answer(s): D



The level of national income in the circular flow will remain constant if

  1. injections are greater than withdrawals
  2. injections are equal to withdrawals
  3. injections are equal to savings
  4. injections plus withdrawals are equal to savings plus investment

Answer(s): B



The equilibrium level of national income in an economy is the level of income at which

  1. Full employment occurs
  2. There is zero inflation
  3. Total planned spending equals the supply of output available
  4. The government's budget and the balance of payments are both exactly balanced

Answer(s): C






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