Economic depression意思

"Economic depression" is a term used to describe a severe and prolonged downturn in economic activity. It is characterized by a sharp decline in economic indicators such as gross domestic product (GDP), employment, investment, and trade. A depression is more severe than a recession, which is a less intense and shorter downturn in the economy.

During an economic depression, businesses may experience significant decreases in demand for their products and services, leading to mass layoffs and unemployment. Consumers may also reduce their spending due to uncertainty about the future and a decline in their disposable income, further exacerbating the economic downturn.

Historically, economic depressions have been associated with events such as the Great Depression of the 1930s, which was a worldwide economic downturn that was triggered by the Wall Street Crash of 1929 and lasted until the late 1930s. The Great Depression was characterized by high unemployment, widespread poverty, and a dramatic decline in industrial output.

To combat economic depressions, governments and central banks may implement various policies aimed at stimulating economic growth, such as fiscal stimulus packages, lowering interest rates, and quantitative easing. However, the effectiveness of these policies can vary depending on the severity and underlying causes of the depression.