The cyclical component of a time series
A)represents periodic fluctuations which reoccur within one year
B)represents periodic fluctuations which usually occur in two or more years
C)is obtained by adding up the seasonal indexes
D)is obtained by adjusting for calendar variation

Question

Quizplus · Accepted Answer

The cyclical component of a time series represents periodic fluctuations that usually occur in two or more years. This is different from the seasonal component which represents periodic fluctuations within one year. The cyclical component is often associated with economic cycles such as the business cycle.

The Cyclical Component of a Time Series