Question

In a time series, economic periods of prosperity followed by recession are described as a(n) _______. Multiple Choice

secular trend
seasonal variation
cyclical variation

Answer 1

cyclical variation

Step-by-step explanation:

Cyclic variation refers to recurrent variation in time series that lasts two or more years and is not gradual in amplitude or length.

These variations are known as oscillation motions, which fluctuate after more than a year.

• Most time series in business and economics show such cyclical variation. There is a four-cycle period defined by the business cycle:

1. prosperity
2. decline
3. depression
4. improvement.