Whats the difference between an economic depression & recession?
A recession is a period when the economy is shrinking and it ends when the economy begins to grow. If the economy remains below potential out put and has high unemployment for a sustained period the economy is considered to be in a depression even if it is growing. The US economy grew most years between 1933 and the beginning of WWII but the whole decade of the 1930’s is called the Great Depression.