A Time Series with Observed Long-Term Upward Movements in Its

question 117

Multiple Choice

A time series with observed long-term upward movements in its values is said to have ________.

• A) a cyclical component
• B) an increasing trend component
• C) a seasonally increasing component
• D) a decreasing trend component

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Definitions:

Backward-Bending

This term describes a situation where, beyond a certain point, higher wages actually lead to a decrease in labor supply because workers prefer leisure over additional work.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a similar, less expensive good, influencing demand patterns.

Income Effect

The effect of income variations in individuals or economies on the demand levels for goods and services.

Corporate Profit

The financial surplus gained by a corporation after deducting all costs, taxes, and expenses from revenue.