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Q.

What's the difference between a recession and a depression ?

Asked by Joseph Chacko, 09 Feb '09 01:15 am
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Answers (5)

1.

There is an old joke among economists that states:
A recession is when your neighbor loses his job.

A depression is when you lose your job.

The difference between the two terms is not very well understood for one simple reason: There is not a universally agreed upon definition. If you ask 100 different economists to define the terms recession and depression, you would get at least 100 different answers.

Recession: The Newspaper Definition
The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
This definition is unpopular with most economists for two main reasons. First, this definition does not take into consideration changes in other variables. For example this definition ignores any changes in the unemployment rate or consumer confidence. Second, by using quarterly data this definition makes it difficult to pinpoint when a recession begins or ends. This means that a recession that lasts t ...more
Answered by Pardeep kapoor, 09 Feb '09 01:24 am

 
  
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2.

One effects worlds economy and other effcets personal health.
Answered by joyesh chakraborty, 09 Feb '09 01:19 am

 
  
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3.

A depression is when you lose your job.
The difference between the two terms is not very well understood for one simple reason: There is not a universally agreed upon definition. If you ask 100 different economists to define the terms recession and depression, you would get at least 100 different answers. I will try to summarize both terms and explain the differences between them in a way that almost all economists could agree with.

Recession: The Newspaper Definition
The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
This definition is unpopular with most economists for two main reasons. First, this definition does not take into consideration c
sabir: Depression
Before the Great Depression of the 1930s any downturn in economic activity was referred to as a depression. The term recession was developed in this period to differentiate periods like the 1930s from smaller economic declines that o ...more
Answered by yusuf syed, 09 Feb '09 01:24 am

 
  
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4.

Recession is depression in the world or nations economy , n depression is like person or people depressed mentally .
Answered by parul advani, 09 Feb '09 01:23 am

 
  
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5.

Both are same. In times of recession people go into depression and in times of depression people go into recession (take a break)
Answered by Ram Alegavi, 09 Feb '09 01:17 am

 
  
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