Depression
Definition
Depression refers to a severe and prolonged economic downturn characterized by high unemployment, low production, and a decline in overall economic activity. It is often marked by falling prices, reduced consumer spending, and business failures.
Analogy
Imagine a roller coaster that suddenly goes downhill at an incredibly fast speed. The depression is like the lowest point of the ride where everything feels gloomy and there's a lack of excitement or progress.
Related terms
Recession: A recession is a period of temporary economic decline with reduced production and employment but not as severe or long-lasting as a depression.
Great Depression: The Great Depression was the most severe economic depression in modern history, lasting from 1929 to the late 1930s. It had widespread effects on economies worldwide.
Economic Recovery: Economic recovery refers to the period following a recession or depression when there is an improvement in economic indicators such as GDP growth, employment rates, and consumer confidence.
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