USA HISTORY

Detailed explanation-1: -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-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 is a significant, pervasive, and persistent decline in economic activity. Economists measure a recession’s length from the prior expansion’s peak to the downturn’s trough. Recessions may last as little as a few months, but the economy may not recover to its former peak for years.

Detailed explanation-4: -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.

Detailed explanation-5: -A recession is a downtrend in the economy that can affect production and employment, and produce lower household income and spending. The effects of a depression are much more severe, characterized by widespread unemployment and major pauses in economic activity.