What Is a Depression? There’s no formal definition of a depression, but economists generally agree that it is a severe and lengthy period of economic decline that impacts several countries simultaneously.
What is a depression & how does it affect the economy?
A depression occurs when the GDP suffers a sustained and sharp decline for years, typically triggered by an extreme economic downturn. Although there have been several periods of recession in the U.S., there has only been one depression in recent times — the Great Depression, which lasted for a decade.
What is economic crisis & economic depression?
It is often understood in economics that economic crisis and the following recession that may be named economic depression are part of economic cycles where the slowdown of the economy follows the economic growth and vice versa.
