Depression


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Depression

Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.

Depression

A particularly long and/or deep recession. While there is no technical definition of a depression, conventionally it is defined as a period featuring severe declines in productivity and investment and particularly high unemployment. During the Great Depression, for example, GDP in the United States dropped 12% between 1929 and 1930 and a further 16% the following year. Likewise, unemployment rose to more than 25% nationwide and higher in some places.

Depression.

A depression is a severe and prolonged downturn in the economy. Prices fall, reducing purchasing power. There tends to be high unemployment, lower productivity, shrinking wages, and general economic pessimism.

Since the Great Depression following the stock market crash of 1929, the governments and central banks of industrialized countries have carefully monitored their economies. They adjust their economic policies to try to prevent another financial crisis of this magnitude.

depression

see BUSINESS CYCLE.

depression

a phase of the BUSINESS CYCLE characterized by a severe decline (slump) in the level of economic activity (ACTUAL GROSS NATIONAL PRODUCT). Real output and INVESTMENT are at very low levels and there is a high rate of UNEMPLOYMENT. A depression is caused mainly by a fall in AGGREGATE DEMAND and can be reversed provided that the authorities evoke expansionary FISCAL POLICY and MONETARY POLICY. See DEFLATIONARY GAP, DEMAND MANAGEMENT.
References in classic literature ?
If he did not at once give his consent to a reunion with his wife, it was only because in his state of depression he did not feel able to take any step.
Adkins said he has been approached by at least two other Olympic athletes who also battle depression, but are reluctant to share their stories because of fear and shame.
Studies have consistently shown that women are considerably more likely to acquire the disease of depression than men.
Children whose depression preceded mania had a rate of multiple anxiety disorder similar to that of those included in the depression plus mania group (around 60%).
The National Institute of Mental Health has several resources available on teen depression.
The latest link between cardiovascular risk and depression emerged in October when researchers at the University of Wales found that people being treated for depression had impaired artery function.
Along with this, negotiators should point out to subjects that intoxication and depression color their world view and distort their judgment, just as they produce the effects and symptoms associated with each condition.
Comment: Why Depression Is More Important Than Generally Realized
Hopelessness depression: A theory-based subtype of depression.