What is the difference between a recession and depression?
To find the answer to this question, we headed to a dictionary for some definitions. Dictionary.com defines an economic recession as, “an extended decline in general business activity, typically three consecutive quarters of falling real gross national product.” The same site defines an economic depression as, “a period of drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and unemployment.” These definitions indicate that the main difference between a recession and depression is the magnitude of economic decline. A depression is simply a severe recession. With that in mind, we searched on “recession,” which led straight to Yahoo!’s
