Depression vs Recession – Difference and Comparison Diffen

slack vs street corner Diffen Economics In stintings, the words deferral and depression are used to refer to economic downswings. One could say that while a receding refers to the economy go down, a depression is a matter of non being open to get up. Comparison chart Improve this chart Frequency printing Infrequent (approximately once in a generation). 3 notable depressions extensive imprint in 1930s, Long Depression from 1870s-1890s, panic of 1837. No formalised definition. A severe recession with a 10% disdain in GDP is usually called a depression. time out Frequent. The internal Bureau of Economic interrogation has identified 10 recessions. (http//bit. ly/acM3VJ) Definition An economic contraction when GDP declines for 2 consecutive quarters is usually called a recession. Ads by Google Recession Depression US Recession Economics GDP Contents 1 dissimilarity between definition of recession and depression 1. 1 Definition of Recession 1. 2 Definition of Depression 2 Characteristics of a Recession vs. Depression 3 Related Articles 4 References Difference between definition of recession and depressionDefinition of Recession A recession is a contraction phase of the line of descent cycle. The U. S. based National Bureau of Economic Research (NBER) defines a recession more(prenominal) broadly as a signifi hobot decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. American newspapers often quote the chance of pollex that a recession occurs when real gross domestic product (GDP) growth is negative for deuce or more consecutive quarters.This measure fails to register several authoritative (NBER defined) US recessions. Definition of Depression A depression refers to a continue downturn in one or more national economies. It is more severe than a recession (which is seen as a normal downturn in the business cycle). in that respect is no official definition for a depression, even though some have been proposed. In the United States the National Bureau of Economic Research determines contractions and expansions in the business cycle, except does not declare depressions.A GDP decline of such magnitude has not happened in the United States since the 1930s. Characteristics of a Recession vs. Depression The attributes of a recession include declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions are the result of falling demand and may be associated with falling prices (deflation), or sharply rising prices (inflation) or a crew of rising prices and stagnant economic growth (stagflation).A common rule of thumb for recession is two quarters of negative GDP growth. The corresponding rule of thumb for a depression is a 10 percent decline in gross domestic product (GDP). Considered a rare but extreme form of recession, a depression is characterized by unusual increases in unemployment, restriction of credit, shrinking output and investment, price deflation or hyperinflation, numerous bankruptcies, cut down amounts of trade and commerce, as well as highly volatile/ roving relative currency value fluctuations, mostly devaluations.Generally periods labeled depressions are tag by a substantial and sustained shortfall of the ability to corrupt goods relative to the amount that could be produced given current resources and technology (potential output). A devastating breakdown of an economy (essentially, a severe depression, or hyperinflation, depending on the circumstances) is called economic collapse. Related Articles GDP vs GNP Monetary Policy vs fiscal Policy Nominal GDP vs Real GDP American parsimoniousness vs Canadian Economy 9/3/12 Depression vs Recession Difference and Comparison Diffen Economic Development vs Economic GrowthReferences http//en. wikipedia. org/wiki/Recession (retrieved on Oc tober 12, 2008) http//en. wikipedia. org/wiki/Depression_(economics) (retrieved on October 12, 2008) The Economist Diagnosing Depression Comments Depression vs Recession affix a comment Comment using Omar Ngodan Secka Group Head, Real realm Marketing at AGIB LTD wonderful explaination reply alike August 13 at 608am Abdulkader Saed Moud Amoud University prolonged recession is known as depression. response 1 Like May 8 at 307amAmmar Kamran ICMAP owesome do Like June 14 at 1145pm Mohammad Asad Lecturer at Kardan constitute of Higher Education recession is for short period of time and its affects can on one economy and depression on the other pile have longlasting affects on more than one economies. Reply 1 Like April 8 at 1233am Saroj Dhal Works at Shoppers give way contineously and consistency down of market condition that is known as depression. Reply 1 Like February 23 at 719am Anonymous comments There are no anonymous comments yet for Depression vs. Rece ssion. Comment anonymously www. diffen. com/difference/Depression_vs_Recession 2/2