Recession / Depression

What is a recession?

• A period of decline in economic activity that lasts for at least two consecutive quarters in a country's Gross Domestic Product (GDP).

• A severe and prolonged downturn in economic activity that lasts for many years.

• A sudden increase in economic activity.

What is a depression?

• A period of decline in economic activity that lasts for at least two consecutive quarters in a country's Gross Domestic Product (GDP).

• A severe and prolonged downturn in economic activity that lasts for many years.

• A sudden increase in economic activity.

What is the National Bureau of Economic Research (NBER)?

• An international organization that sets economic policies for countries around the world.

• A government agency responsible for determining when a recession or depression has officially begun and ended.

• A research institute that studies the impact of economic downturns on society.

What are some economic indicators that the NBER uses to determine whether an economy is in a recession or depression?

• GDP, employment rates, income, and industrial production.

• Housing prices, stock market performance, and consumer spending.

• Government debt, inflation, and interest rates.

How do recessions and depressions differ?

• Recessions are shorter and less severe than depressions.

• Depressions are shorter and less severe than recessions.

• Recessions and depressions are the same thing.