Whats the difference between (ecomonic) Depression and Recession. Seeking basic easy to understand definition?

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recession
onelight asked:


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Looking it up on-line it stated that if the financial events go on for three or more quarters, etc. Yet, I still found it challenging to comprehend the difference between economic recession and depression. Sights I read sounded like “government” language.

Seeking more “regular citizen” language for comprehension. Any added examples for easier understanding is appreciated. Thanks.
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When it shows to be “obvious” to citizens that environment of recession, or depression, is going on, why is it stated by the president at the time that the country is not in a recession, or depression ? Just to calm the citizens ?
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Florence

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    • This entry was posted on Monday, September 28th, 2009 at 2:06 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    No Responses to “Whats the difference between (ecomonic) Depression and Recession. Seeking basic easy to understand definition?”

    1. crimsonedge Says:
      September 30th, 2009 at 7:37 pm

      A recession is when the total market value of the economy (Gross Domestic Product) declines two consecutive quarters (about 3 months). A depression is an severe and unusual (not consider part of the business cycle) recession and rarely happens.

      Technically it is not a recession because real GDP has been positive in the last two quarters but that’s just splitting hairs.

    2. Downstrike Says:
      October 1st, 2009 at 7:48 pm

      It’s a matter of personal interpretation, usually determined by one’s political opinion, proving as usual, that politics is the problem, not the solution.

    3. Seeker Says:
      October 4th, 2009 at 3:21 pm

      I think this web site is user friendly….