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When an economic storm rolls in, you might wonder if the economy has hit a recession or depression. Although both indicate difficult economic downturns, the causes and effects of each vary. Let's ...
Recession vs. depression, therefore, is a key question on everyone’s minds these days. Generally, a recession is a downturn in economic conditions, but a depression is a deeper and/or more ...
A recession is a period of significant, lasting decline in the economy, while a depression is more sustained and severe and has a more widespread impact. Here’s some more information on recessions.
Differences explicitly pointed out between the recession and the Great Depression include the facts that over the 79 years between 1929 and 2008, great changes occurred in economic philosophy and policy, [9] the stock market had not fallen as far as it did in 1932 or 1982, the 10-year price-to-earnings ratio of stocks was not as low as in the ...
A recession is briefly defined as a period of declining economic activity spread across the economy (according to NBER). Under the first definition, each depression will always coincide with a recession, since the difference between a depression and a recession is the severity of the fall in economic activity.
An L-shaped recession or depression occurs when an economy has a severe recession and does not return to trend line growth [8] for many years, if ever. The steep decline, is followed by a flat line makes the shape of an L. This is the most severe of the different shapes of recession.
Recession Period. Start. End. Total Time Elapsed. The Great Depression–Late ’20s and Early ’30s. August 1929. March 1933. 3 years, 7 months. The Great Recession–aka The 2008 Financial Crisis
A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different. [27] As an informal shorthand, economists sometimes refer to different recession shapes, such as V-shaped, U-shaped, L-shaped and W-shaped recessions. [28]