Asked by Diana Muñoz on Jun 13, 2024
Verified
A key difference between recessions and depressions is that recessions are:
A) longer than depressions.
B) more severe than depressions.
C) accompanied by price increases,while depressions are accompanied by price decreases.
D) shorter and less severe than depressions.
E) accompanied by price decreases,while depressions are accompanied by price increases.
Recessions
Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
Depressions
Extended periods of significant decline in economic activity across an economy, characterized by high unemployment, falling prices, and reduced levels of trade and investment.
Price Increases
Price increases refer to the rise in the cost or value of goods and services over time, often measured by inflation rates.
- Comprehend the differences between recessions and depressions in terms of severity, duration, and economic indicators.
Verified Answer
KH
Kayla HendersonJun 18, 2024
Final Answer :
D
Explanation :
Recessions are typically shorter and less severe than depressions. Depressions are characterized by prolonged periods of economic downturns, high unemployment rates, and significant decreases in GDP, while recessions are milder and shorter periods of economic contraction. Additionally, recessions are typically accompanied by decreases in prices (deflation), while depressions are usually accompanied by increases in prices (inflation).
Learning Objectives
- Comprehend the differences between recessions and depressions in terms of severity, duration, and economic indicators.