The correct answer is D) Recessions are economic contractions that last 6 months or longer, while depressions are particularly severe economic contractions with no specified time frame.
In economics, the difference between a recession and a depression is that recessions are economic contractions that last 6 months or longer, while depressions are particularly severe economic contractions with no specified time frame.
When a country stops its economic growth, it is said that its economy is in a recession. This means that economy is passing a period of contraction that can last approximately six months or more. A Depression is a more complex situation. This means that the economy of a country not only is not growing but is decreasing. This means that the economy is passing a period of a severe economic contraction that can last more time than a recession. For example, the Great Depression of October 1929, as a consequence of the stock market crash. It ended until 1939.
