Malek Alatrash Recession vs Depression 1195090

A recession is a business cycle contraction when there is a general decline in economic activity.
Recessions generally occur when there is a widespread drop in spending. Another definition for a
recession is that it’s a macroeconomic term that refers to a significant decline in general
economic activity in a designated region. It had been typically recognized as two consecutive
quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such
as a rise in unemployment.

A depression is a severe and prolonged downturn in economic activity. In economics, a

depression is commonly 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 relatively less frequent than milder recessions, and tend to be accompanied by
high unemployment and low inflation.