If the Model Y_t = T_t × S_t × I_t

question 125

Multiple Choice

If the model y_t = T_t × S_t × I_t is applied, which of the following indicates no seasonality?

• A) The sum of the adjusted seasonal indices equals the number of seasons.
• B) The average of the adjusted seasonal indices equals 1.
• C) Every adjusted seasonal index is practically 1.
• D) The product of the adjusted seasonal indices equals 1.

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Definitions:

Government Activity

Actions or operations carried out by the government in order to provide public goods and services, regulate the economy, and support societal welfare.

Rent-Seeking Activity

The practice of gaining economic advantage without reciprocating any benefits back to society through wealth creation.

Redistribute Income

The transfer of income from certain individuals or groups to others through mechanisms like taxes and welfare programs aimed at lessening income inequality.

Public-Sector Activity

Actions and services carried out by the government or governmental agencies for the public interest.