Recession Intro

Econ. Class

Recession

A significant decline in economic activity across the economy, lasting more than a few months. It is typically reflected in GDP, real income, employment, industrial production, and wholesale-retail sales.

Depression

A prolonged economic downturn that lasts for several years, characterized by high unemployment rates, a significant drop in consumer demand, and overall economic stagnation.

Debt

Money borrowed that must be repaid, often with interest, is typically used to fund expenditures or investments.

Default

The failure to fulfill the legal obligations of a loan or debt repayment, often resulting in significant financial penalties or loss of assets.

Unemployment

The state of being jobless, often resulting from economic downturns, where individuals are actively seeking work but cannot find employment.