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What Is an Economic Depression?

By Kristi WaterworthUpdated Aug 7, 2025 at 9:03 PM

Key Points

  • Economic depressions are severe recessions lasting many years with over 10% annual GDP decline.
  • Depressions cause global impacts like massive unemployment and business failures.
  • The US experienced one true depression, the Great Depression, lasting from 1929 to 1939.

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