Question

The rise and fall of a time series over periods longer than one year is called

• A. Secular trend
• B. Seasonal variation
• C. Cyclical variation
• D. Irregular variation

Answer 1

The correct option is C Cyclical variation

$\Rightarrow$ The rise and fall of time series over periods longer than one year is called $Cyclicalvariation.$

$\Rightarrow$ Cyclical variations, which are also generally termed as business cycles, are the periodic movements. These variations in a time series are due to ups & downs recurring after a period from Season to Season.

$\Rightarrow$ Though they are more or less regular, they may not be uniformly periodic. These are oscillatory movements which are present in any business activity and is termed as business cycle.

$\Rightarrow$ It has got four phases consisting of prosperity (boom), recession, depression and recovery. All these phases together may last from 7 to 9 years may be less or more.