USA HISTORY

Detailed explanation-1: -A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels. Generally, when an economy continues to suffer recession for two or more quarters, it is called depression.

Detailed explanation-2: -A depression is a severe and prolonged downturn in economic activity. A depression may be 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 far less common than milder recessions.

Detailed explanation-3: -A recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. Many other indicators of economic activity are also weak during a recession.

Detailed explanation-4: -What Is Depressed? Depressed refers to a state or condition of a market, product, currency, or security characterized by slumping prices, low volume, and lack of buyers. It usually represents a prolonged period of low prices and activity.

Detailed explanation-5: -One hallmark of a depression is skyrocketing unemployment rates. For example, unemployment reached 24.9% during the worst of the Great Depression while wages plummeted. To put that number in perspective, consider that the national unemployment rate was 3.5% in July 2022.