Recession vs Depression for beginners
A recession is a period of economic decline, typically defined as two consecutive quarters of negative GDP growth. During a recession, businesses may experience declining profits and sales, leading to decreased investments, increased unemployment, and decreased consumer spending. A recession can last several quarters to several years and can be a normal part of the economic cycle.
A depression, on the other hand, is a much more severe economic downturn, characterized by a sustained period of low economic activity, including high unemployment, low consumer spending and investment, and decreased economic output. Depressions are generally considered to be much longer and more severe than recessions and can last for several years or even a decade or more.
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