Definition of Economic depression:
A state of the economy resulting from an extended period of negative economic activity as measured by GDP. It is often described as a more severe form of a recession that leads to extended unemployment, a spike in credit defaults, broad declines in income and production, currency devaluation and a deflationary economy.
In times of depression, consumer confidence and investments decrease, causing the economy to shut down. Economic factors that characterize a depression include:.
A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10%. in a given year. Depressions are relatively less frequent than milder recessions, and tend to be accompanied by high unemployment and low inflation.
How to use Economic depression in a sentence?
- Depressions are often identified as recessions lasting longer than three years or resulting in a drop in annual GDP of at least 10%.
- The U.S. economy has experienced several recessions but just a handful of major economic depressions.
- A depression is characterized as a dramatic downturn in economic activity in conjunction with a sharp fall in growth, employment, and production.
Meaning of Economic depression & Economic depression Definition