What are the standards for our economy to be labeled “in a depression?”?
Posted by admin
Vicky S asked:
I seem to recall from high school economy that there had to be a certain percentage unemployed and a certain amount of inflation or something. Does anyone know the official standards? I have been thinking about lately and feel inadequate when talking with other people about the economy until I know for sure. Thanks!
Painted Kitchen Cabinets
I seem to recall from high school economy that there had to be a certain percentage unemployed and a certain amount of inflation or something. Does anyone know the official standards? I have been thinking about lately and feel inadequate when talking with other people about the economy until I know for sure. Thanks!
Painted Kitchen Cabinets
January 26th, 2010 at 10:43 pm
you’ll know when it hits, trust me.
January 29th, 2010 at 10:59 am
In economics, a depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle.
Considered a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.
Man , that sounds a lot like what is going on right now