Separate topics with commas, or by pressing return. Use the delete or backspace key to edit or remove existing topics.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$3 Answers
There are two thoughts on the definition of what a recession is.
Some say that a recession is any overall decline in output of an economy over a period of time.
Others say that a recession is any overall decline in the per capita output of an economy over a period of time.
The second definition is more inclusive, and the difference between them is essentially that the former is looking for any decline, regardless of the population shrinking or growing, IE, it is not necessarily co-related with people getting wealthier or poorer, and the second definition essentially includes population change as a baseline from which economic growth is judged. An example of there this might be different is if you have 2 countries, one has 3% population growth and 2% GDP growth - this would be a recession in the second definition but not the first - or, say, population shrinking at 1% but GDP shrinking at .1% 0 this would be a recession in the first definition but not in the second.
A depression is simply a severe, prolonged recession. There are no hard and fast numbers I can give you - but if negative growth is sustained for multiple years, or goes over -5%/year or so, you will see most people agree that it is a depression.
Some say that a recession is any overall decline in output of an economy over a period of time.
Others say that a recession is any overall decline in the per capita output of an economy over a period of time.
The second definition is more inclusive, and the difference between them is essentially that the former is looking for any decline, regardless of the population shrinking or growing, IE, it is not necessarily co-related with people getting wealthier or poorer, and the second definition essentially includes population change as a baseline from which economic growth is judged. An example of there this might be different is if you have 2 countries, one has 3% population growth and 2% GDP growth - this would be a recession in the second definition but not the first - or, say, population shrinking at 1% but GDP shrinking at .1% 0 this would be a recession in the first definition but not in the second.
A depression is simply a severe, prolonged recession. There are no hard and fast numbers I can give you - but if negative growth is sustained for multiple years, or goes over -5%/year or so, you will see most people agree that it is a depression.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$Report Abuse
g'day,
Thank you for your question.
A recession is when a neighbour loses his job. A depression is when you lose yours.
http://economics.about.com/cs/businesscycles/a/depressions.htm
A depression is deeper than a recession. In a depression, GDP declines by 10 per cent or more while a recession is less severe. In the Great Depression, the US economy contracted by 50% between 1929 and 1933. Hopefully, things won't get that bad this time although it could well become a depression.
http://money.howstuffworks.com/recession-and-depression2.htm
Regards
http://money.howstuffworks.com/recession-and-depression2.htm
Thank you for your question.
A recession is when a neighbour loses his job. A depression is when you lose yours.
http://economics.about.com/cs/businesscycles/a/depressions.htm
A depression is deeper than a recession. In a depression, GDP declines by 10 per cent or more while a recession is less severe. In the Great Depression, the US economy contracted by 50% between 1929 and 1933. Hopefully, things won't get that bad this time although it could well become a depression.
http://money.howstuffworks.com/recession-and-depression2.htm
Regards
http://money.howstuffworks.com/recession-and-depression2.htm
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
Basically, a depression is a longer term recession, and a depression has more of an economic decline than a recession
In economics, key differences between the terms depression and recession exist. For example in the US, the last real depression was the Great Depression of the 1930s. The US economy has experienced frequent bouts of recession, however.
Generally, a recession in the economy is far less severe than a depression. It is marked by a decrease in a country’s Gross Domestic Product (GDP) over more than one quarter of a year. The GDP decrease is measured as less than a 10% decrease.
As well, economic recession tends to be measured in quarters of a year, rather than in full years. A depression is measured as a decrease in the GDP of 10% or higher in a given year. Thus, one cannot accurately describe a quarter decrease of greater than 10% as a depression unless the same conditions exist for a year.
If economic conditions improve in the fourth quarter of the year, and the GDP decrease becomes an increase, then the year is considered to have undergone a recession. If however, the GDP has steadily decreased and the year totals show a 10% or greater reduction in the GDP, then the year is considered to have been a depression.
Recessions tend to occur with greater frequency than do depressions because the economics of a country are relatively fragile, and slight changes, or shocks, like the dot.com burst, cause decreased spending that reduce the GDP by less than 10%. Usually a diversified economy recovers from this type of shock with relative rapidity because there are other ways to spend money.
The dot.com recession did last for several years. Some people inaccurately termed this a depression. It did not reduce the GDP by more than 10%, thus the economy recessed, and was not depressed.
People tend to reach for a term that reflects more than its actual meaning. Referring to a depressed economy is evocative of the type of depression people encounter when they must make less, spend less or invest less. A recession seems more neutral or more positive in comparison.
In economics, key differences between the terms depression and recession exist. For example in the US, the last real depression was the Great Depression of the 1930s. The US economy has experienced frequent bouts of recession, however.
Generally, a recession in the economy is far less severe than a depression. It is marked by a decrease in a country’s Gross Domestic Product (GDP) over more than one quarter of a year. The GDP decrease is measured as less than a 10% decrease.
As well, economic recession tends to be measured in quarters of a year, rather than in full years. A depression is measured as a decrease in the GDP of 10% or higher in a given year. Thus, one cannot accurately describe a quarter decrease of greater than 10% as a depression unless the same conditions exist for a year.
If economic conditions improve in the fourth quarter of the year, and the GDP decrease becomes an increase, then the year is considered to have undergone a recession. If however, the GDP has steadily decreased and the year totals show a 10% or greater reduction in the GDP, then the year is considered to have been a depression.
Recessions tend to occur with greater frequency than do depressions because the economics of a country are relatively fragile, and slight changes, or shocks, like the dot.com burst, cause decreased spending that reduce the GDP by less than 10%. Usually a diversified economy recovers from this type of shock with relative rapidity because there are other ways to spend money.
The dot.com recession did last for several years. Some people inaccurately termed this a depression. It did not reduce the GDP by more than 10%, thus the economy recessed, and was not depressed.
People tend to reach for a term that reflects more than its actual meaning. Referring to a depressed economy is evocative of the type of depression people encounter when they must make less, spend less or invest less. A recession seems more neutral or more positive in comparison.
source(s):
http://economics.about.com/cs/businesscycles/a/depressions.htm http://www.wisegeek.com/what-is-the-difference-between-a-depression-and-a-recession.htm
http://economics.about.com/cs/businesscycles/a/depressions.htm http://www.wisegeek.com/what-is-the-difference-between-a-depression-and-a-recession.htm
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
