Economic Depression

Definition

An economic depression is a severe downturn in economic activity characterized by high unemployment rates, reduced production levels, decreased consumer spending, and overall economic hardship.

Related terms

Recession: A recession is a period of temporary economic decline characterized by reduced trade activity, decreased GDP growth, and increased unemployment rates.

Inflation: Inflation refers to the sustained increase in the general price level of goods and services in an economy over time.

Fiscal Policy: Fiscal policy involves government decisions regarding taxation and spending aimed at influencing the overall state of the economy.