All of the Following Are True About a Cyclical Pattern

question 21

Multiple Choice

All of the following are true about a cyclical pattern EXCEPT it is ______.

• A) often due to multi-year business cycles
• B) often combined with long-term trend patterns and called trend-cycle patterns
• C) an alternating sequence of data points above and below the trend line
• D) usually easier to forecast than a seasonal pattern due to less variability

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Definitions:

Aggregate Expenditures

The total amount of spending on goods and services in an economy at a given overall price level and in a given time period.

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.

Aggregate Spending

Aggregate spending is the total amount of spending in an economy, including consumption, investment, government expenditures, and net exports during a specific period.

Autonomous Saving

The portion of savings of an economy that is independent of income levels, often related to baseline savings by consumers and companies.