A Time-Series Plot That Exhibits a General Increase in Value

question 15

Multiple Choice

A time-series plot that exhibits a general increase in value from the early periods to the latest time periods:

• A) most likely is exhibiting a cyclical component.
• B) has a trend component present in the data.
• C) will probably start to decline in a few periods.
• D) has a seasonal component present in the data

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Definitions:

Free Market

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.

Market Price

Today's rate at which one can sell or buy a service or asset.

Not Binding

A term used to describe a situation where a constraint or limit (such as a price ceiling or floor) does not affect the equilibrium outcome of the market.

Equilibrium Price

The market price where the quantity of goods supplied equals the quantity of goods demanded.