Resolved Question
Depression vs recession
what is the difference between these two period of economic decline? depression sounds more serious, some says recession is 2 quarter and some says 3 quarter of decline...
about 1 year ago
Best Answer - Chosen by Asker
Technically, a country is said to be in a recession if its GDP growth declines for two or more consecutive quarters. Meanwhile, a depression refers to a period in time when the economic downturn is much more severe and lasts longer. You could say the last real depression in the US was during 1937-1938, wherein the real GDP declined by almost 20%.
about 1 year ago
Answers (2)
Depression is more of a longer-term recession roughly characterized by a decline in GDP exceeding 10% in more than two years. It is also usually characterized by deflation, a financial crisis, and numerous currency devaluations. Because of its severity, depressions occur less often than recessions.
about 1 year ago
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Most economists believe gdp growth represents increasing prosperity. They think a depression is merely a recession, with negative gdp growth, that lasts longer and goes more deeply than normal. A recession is a pause during a period of growth. A depression marks the end of the period of growth…giving the economy a chance to make adjustments so that a new period of growth may begin. Gdp growth alone is a fraud. The gross number just doesn’t tell you anything worth knowing. It doesn’t really matter how fast an economy is growing. What counts is how fast it is growing per person…and whether that ‘growth’ is real or phony. Growth is not the same as prosperity…
about 1 year ago
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