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 periodicals archive ?
Following the Great Depression and especially since the 1970s, federal budget deficits have become a permanent feature of public spending.
They also demonstrate the enduring value of Robert Handy's 1960 Church History essay and encourage historians to employ the Great Depression as a historical laboratory for religion.
The major question today should be whether the failure of capital markets (and the implications for government debt) after 2007 has been as severe as during the Great Depression.
Each author's section starts with an introduction to the author's educational and professional background and the primary contributions the author has made to the study of the Great Depression.
We're in a rainstorm compared to the Katrina that was the Great Depression," she said.
While "Black Tuesday" contributed to the onset of the Great Depression, Galbraith argues that it was only one of many factors, including gross inequalities in income distribution, lax government regulations, foreign trade imbalances, and poor contemporary economic guidance.
During the Great Depression, about half the states decided that the immediate cost to society of widespread foreclosures was greater than the danger of costs later on.
One of the greatest works was the 1939 novel 'The Grapes of Wrath', which was set during the Great Depression, which focuses on a poor family of sharecroppers, the Joads, driven from their home by drought, economic hardship, and changes in the agriculture industry.
There are three strands of thinking about what caused the Great Depression of the 1930s.
The Great Depression was caused primarily by a fall in total demand.
The story is set in the year that Franklin Delano Roosevelt is elected, during the height of the Great Depression.
The branded tokens are part of a reinvention of Monopoly that Hasbro, the game's maker, hopes will offer consumers modernized references more relevant to them than the elements of a game that dates to the Great Depression.