A recession is defined as a period of negative economic growth, while a depression is a more severe downturn characterized by prolonged negative economic growth and high unemployment.
2. What are the main causes of recessions?
There are several possible causes of recessions, but the most common include:
-A decrease in consumer spending
-An increase in taxes or interest rates
-A decrease in government spending
-An increase in imports
3. What are the main effects of recessions?
The main effects of recessions include:
-A decrease in GDP
-An increase in unemployment
-A decrease in stock prices
-A decrease in housing prices
4. What are the main causes of depressions?
Depressions are typically caused by a combination of factors, but the most common include:
-A decrease in consumer spending
-An increase in taxes or interest rates
-A decrease in government spending
-An increase in imports
5. What are the main effects of depressions?
The main effects of depressions include:
-A decrease in GDP
-An increase in unemployment
-A decrease in stock prices
-A decrease in housing prices
