What's the difference between a recession and a depression?

Question

Quizplus · Accepted Answer

The main difference between a recession and a depression is the severity of the economic downturn. A recession is a small decline in economic output and employment, typically lasting 6-18 months. On the other hand, a depression is a severe and prolonged downturn in economic activity, lasting for several years and characterized by massive unemployment, steep declines in production and trade, and rising bankruptcies. While there is no clear definition of what constitutes a depression, some economists consider a decline in real GDP by more than 10% as a depression.

What's the Difference Between a Recession and a Depression