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satela [25.4K]
3 years ago
13

Define economic depression Define economic recession

Social Studies
2 answers:
gtnhenbr [62]3 years ago
8 0

<u>Economic Recession & Economic Depression:</u>

Economic Recession:

Economic Recession is the phase in the business cycle which leads to growth in the negative Gross Domestic Product which lasts for few months. This happens when there is a drop in the economic activity.  During recession there will be financial crisis, there will be unemployment, and government borrowing will increase.

Economic Depression:

Economic depression is the downturn or serious drop in economic activity which lasts for many years.  The major reason for economic depression can be the decreasing consumer confidence which results in the downfall of demand. Some of the resultants are

  • increased unemployment
  • drop in available credit
  • reducing outputs
  • sustained volatility in the value of currencies
solmaris [256]3 years ago
3 0

Answer: A depression is a severe and prolonged downturn in economic activity.

A recession is a business cycle contraction when there is a general decline in economic activity.

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