Depression

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Depression

Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

depression

see BUSINESS CYCLE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Additional water samples were collected from pools of standing water within four of the slumped areas in 2007.
The models are reliable and accurate and they can be used to predict the slump with a high degree of accuracy across a wide range of constituent materials.
"It compares to the slump of the early 90s where you needed over 55 per cent of your pay for a mortgage."
The slump has already forced Schwab to reduce its staff levels, with up to 100 of its workforce going in Birmingham as part of a 13 per cent staff reduction worldwide.
This means companies should try to determine whether customers have the resources to survive the slump. As Netterville puts it, "Just because they've been good for years, it doesn't follow that they will be around forever." Gross also recommends that companies take a look at the contribution customers make to the bottom line.
All are attributing the slump in sales to high interest rates and confusion over the proposed Goods and Services Tax (GST) which is set to take effect on Jan.
Despite the slump yesterday from his charges yesterday, Scotland team manager George Mackenzie was anything but despondent.
Oil giant BP beat the slump, adding 0.5 per cent and telecoms firm BT put on 1.8 per cent.
The slump has been not just discouraging for some recyclers, but downright devastating, as some yards have shut their gates permanently.
The slump test is conducted at the construction site, explained Sing Chu, P.E., president of the Concrete Industry Board and an engineer with the engineering firm of Weiskopf & Pickworth.