Which of the Following Is True of Time Series Data

question 5

Multiple Choice

Which of the following is true of time series data?

• A) Time series data are used very infrequently in economic analysis.
• B) Time series data measures a variable for different individuals at a point in time.
• C) Time series data combines panel data with cross-sectional data.
• D) Time series data measures a given variable at different points in time.

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Definitions:

Law of Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Rational Expectations

A school of thought that argues people form expectations based on all available information, including the likely future actions of government policymakers.

Expansionary Monetary Policy

A strategy employed by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Workers

Individuals who perform tasks or services for wages or salary in various types of employment or labor.