Definition Of Depression Economic

In economics a depression is a sustained long term downturn in economic activity in one or more economies.

Definition of depression economic. We often refer to it simply as a depression it is a more severe and longer lasting form of recession. An economic depression is an occurrence wherein an economy is in a state of financial turmoil often the result of a period of negative activity based on the country s gross domestic product gdp gross domestic product gdp gross domestic product gdp is a standard measure of a country s economic health and an indicator of its standard of living. An economic depression is an extremely severe long term contraction in economic activity. In a depression gdp annual falls more than 5 and unemployment is in the double digits.

It is a more severe downturn than a recession which is seen by some economists as part of the modern business cycle. Declining economic activity is characterized by falling output and employment levels. Depression in economics a period of economic hardship more severe than a recession it is commonly measured by a fall in output and a rise in unemployment. The most severe and widespread depression was the great depression of the 1930s.

A recession is a situation of declining economic activity. Depression is defined as a severe and prolonged recession. An economic depression is a steep and sustained drop in economic activity featuring high unemployment and negative gdp growth. An economic depression is a long period during which the economic does not grow and unemployment remains very high.

Generally when an economy continues to suffer recession for two or more quarters it is called depression.