Economic Depression
Definition
An economic depression is a long-term downturn in economic activity characterized by high unemployment rates, decreased consumer spending, business failures, and overall economic decline.
Related terms
Recession: A less severe form of economic downturn where there's a temporary drop in economic activity for two consecutive quarters.
Inflation: The rate at which general level prices for goods or services rise causing purchasing power to fall.
Deflation: The reduction of the general level of prices in an economy.
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