What is Depression?
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It is more severe than a recession. When depression occurs, it will continue for several years. There is no official definition for ‘Depression’. A prolonged recession may be called a ‘depression’. A depression is characterized by an unusual increase in unemployment, rigidity on credit, slowdown in industrial output and investment, price deflation , numerous bankruptcies , great fall in trade and commerce as well as volatile currency valuation (mostly devaluation). “A devastating breakdown of an economy is called economic collapse”.
