Time Series • Time Series Analysis and Components

Cyclical Variation

Notes 2 Time Series Analysis and Components

Quick concept

Cyclical variation refers to long-term fluctuations around the trend that are generally associated with broader economic or business cycles.

Notes

Cyclical variation refers to long-term fluctuations around the trend that are generally associated with broader economic or business cycles.

Example

Business activity may rise during an expansion phase and decline during an economic slowdown.

Cyclical movements occur over a comparatively long period.
They move around the trend rather than replacing it.
They are often linked with prosperity, recession, depression and recovery.
Unlike seasonal variation, the length of a cycle is not a fixed calendar period.