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Recession Versus Depression

RECESSION 

  • GDP fall among two consecutive quarters under consideration 
  • A natural occurrence and has room in the economic cycle 
  • Results are short-run; hence impact can be managed 
  • Ex: 1937 UK Recession

DEPRESSION  


  • GDP fall or significant amount of fall in GDP
  • Does not happen frequently
  • Has a severe impact on economy in the longer run
  • Ex: Great Depression in 1929 which lasted for 10 years
    
                                        

Comments

  1. Paras MishraApril 3, 2020 at 10:06 AM

    Hi sophie
    Very interesting,good job and thanks for sharing such a good blog.your article is so convincing that I never stop myself to say something about it.You’re doing a great job.Keep it up

    ReplyDelete

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