Which of the following terms refers to an unusually severe,prolonged recession,typically with an unemployment rate that exceeds 20 percent?
A) Depression
B) Inflation
C) Deflation
D) Stagflation

Question

Quizplus · Accepted Answer

A depression refers to a severe and prolonged economic downturn, characterized by a significant decline in economic activity, low consumer confidence, high unemployment rates, and falling prices of goods and services. In a depression, the unemployment rate is typically above 20 percent, and the economy is in a state of deep contraction, with businesses closing down or experiencing severe financial distress. In contrast to a recession, which is a milder form of economic contraction, a depression can last for several years, and it takes a long time for the economy to recover.

Which of the Following Terms Refers to an Unusually Severe,prolonged