The nation of Florentina is in the midst of a serious economic downturn.The nation's GDP has declined steadily for over five years and is now at its lowest level in over fifty years.Florentina's unemployment rate is at an all time high and the nation's CPI is falling.Florentina's economic condition is referred to as a:

Question

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Florentina's economic conditions meet the characteristics of a depression, which is a severe and prolonged downturn in economic activity, characterized by low GDP, high unemployment, and falling prices. Stagflation would refer to a period of high inflation and stagnant economic growth, which is not the case in Florentina. Balance of trade deficit and retraction do not fully capture the severity of Florentina's economic situation.

The Nation of Florentina Is in the Midst of a Serious