In a Time Series, Economic Periods of Prosperity Followed by Recession

question 42

Multiple Choice

In a time series, economic periods of prosperity followed by recession are described as:

• A) Secular trend
• B) Seasonal variation
• C) Cyclical variation
• D) Erratic variation

---

Definitions:

360-Day Year

An accounting convention that simplifies interest calculation by assuming all months have 30 days.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Leap Years

Years that include an extra day (February 29) to keep the calendar year synchronized with the astronomical year.

Leap Years

Years with an extra day (February 29) added to keep the calendar year synchronized with the astronomical year or seasonal year.