If we look at the economic depression meaning, it is an extreme downturn in economic activity which lasts for several years. There are various definitions and specifications for depression, as some people take depression as a widespread and more severe recession. High unemployment rates, stalled domestic business activity and international trade, are some of the characteristics of the depression. But when we have X unemployment rate or Y GDP, we cannot say that we have an official depression. Some experts believe that depression lasts only when economic activity is declining, while the common understanding is that depression lasts until economic activity has returned to its normal levels.

Difference 101