what is the difference between recession and economic depression?
217716
A recession is a downtrend in the economy that can affect production and employment, and produce lower household income and spending. The effects of a depression are much more severe, characterized by widespread unemployment and major pauses in economic activity.
1323088
A recession is the contraction phase of the business cycle. It begins after the economy reaches a peak of activity and ends as the economy reaches its trough. ... On the other hand, a depression is a prolonged period of economic recession marked by a significant decline in income and employment.
1146486
A recession is a decline of economic activity, more specifically, a decline in gross domestic product (GDP) for two or more consecutive quarters. ... Factors that cause a recession include high interest rates, reduced consumer confidence, and reduced real wages.
746164
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
517944
Financial crisis occur when some financial assets lose a major amount of value rapidly. ... In conclusion, the difference is that financial crises affect the financial and investment markets in the economy but economic crises influence entire economic activities.
1306152
The Long Depression was a worldwide price and economic recession, beginning in 1873 and running either through March 1879, or 1896, depending on the metrics used.
1090168
The first statistic for demonstrating the decline of the economy into depression is the unemployment rate. As the above graph indicates the economy descended from full employment in in 1929 where the unemployment rate was 3.2 percent into massive unemployment in 1933 when the unemployment rate reached 25 percent.
1066406
The Classical Model describes the economy in the long run - where resources are fully employed and everyone is working. The Keynesian Model describes what happens during expansions and recessions, in the short run, when the economy is above or below its potential.
209952
The U.S. is 'officially' in a recession—but economists say it's far from a typical downturn. ... While many experts and economists generally define a recession as a GDP decline in back-to-back quarters, they defer to NBER to officially make the call.
1024102
The day-to-day ups and downs of the market can be much more extreme than a business cycle. ... A business cycle is usually more restricted, whereas market fluctuations are worldwide. A business cycle is a major, prolonged fluctuation rather than a day-to-day movement.
471454
Perhaps the one main difference between the two is their duration. A recession usually lasts a year or two, maximum. ... A contraction might be described as a more extreme version of a recession that can last for a much longer time.
156640
The day-to-day fluctuations are more likely to have an impact on people's finances. A business cycle is usually more restricted, whereas market fluctuations are worldwide. A business cycle is a major, prolonged fluctuation rather than a day-to-day movement.
494904
The Great Depression was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.
336093
The Bottom Line During a correction, prices fall significantly across a single asset, industry or an entire market. A recession occurs when an entire economy contracts for several months. If the recession persists and is particularly severe, it may eventually be considered a depression.
475683
An economic downturn is a general slowdown in economic activity over a sustained period of time. ... The main features of an economic downturn include rising unemployment, falling share and house prices, low consumer confidence and declining investment.
1135566
The definition of a recession is two consecutive quarters of negative gross domestic product. ... A “technical recession” is when you have 2 negative quarters of GDP, but it is due mainly to slowing growth or an isolated event rather than a major underlying cause.
740266
'A recession is a period of decline in total output, income, employment and trade, usually lasting six months to a year and marked by widespread contractions in many sectors of the economy. ... A depression is a prolonged period of economic recession marked by a significant decline in income and employment.