A depression can be defined as
A)a mild reduction in total production coupled with a rising unemployment rate that lasts for several years
B)a decline in total production that lasts less than six months
C)a severe fall in stock prices that causes financial panic and lasts several years
D)a severe reduction in total production coupled with high unemployment that lasts several years
E)a decline in government spending and taxes that lasts for several months

Question

Quizplus · Accepted Answer

A depression is characterized by a severe reduction in total production coupled with high unemployment that lasts several years. The other options describe a mild reduction in production (A), a decline that lasts less than six months (B), a severe fall in stock prices (C), or a decline in government spending and taxes (E), none of which fully capture the definition of a depression.

A Depression Can Be Defined as