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What is the recession of economy and what is depression?

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What is the recession of economy and what is depression?
posted Mar 8, 2016 by anonymous

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A common rule of thumb for recessions is two quarters of negative GDP growth. On the other hand, whereas a depression is a prolonged period of economic recession marked by a significant decline in income and employment. Depressions are caused by the same factors that lead to a recession.
So in short recession means negative growth rate where as depression means prolonged recession for a significant time.

Example
Recession: 2001, 2008
Depression: 1930

answer Jul 20, 2016 by Shivaranjini
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