The variation in an economic time-series which is caused by major expansions or contractions usually of greater than a year in duration is known as:
A) secular trend
B) cyclical variation
C) seasonal effect
D) unpredictable random factor
E) none of the above

Question

Quizplus · Accepted Answer

The variation in an economic time-series caused by expansions or contractions greater than a year in duration is known as cyclical variation. This variation is influenced by business cycles and can cause economic booms or recessions.

The Variation in an Economic Time-Series Which Is Caused by Major