Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T17:12:33+05:30 2021-09-30T17:12:33+05:30In: Economics What is Depression? What is Depression? key economy terms Share Facebook 1 Answer Recent 0 Questions 518 Answers 176 Best Answers 0 Points View Profile Best Answer [Deleted User] 2021-09-30T17:13:52+05:30Added an answer on September 30, 2021 at 5:13 pm Depression Depression is defined as a severe and prolonged recession. A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels. Generally, when an economy continues to suffer recession for two or more quarters, it is called depression. The level of productivity in an economy falls significantly during a depression. Both the GDP (gross domestic product) and GNP (gross national product) show a negative growth along with greater business failures and unemployment. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Spot Price? What is Sovereign Risk?