Does a depression always follow a recession? Yes, the trough is always considered a depression. No, a depression is indicated when the recession is exceptionally long. Yes, for recovery to occur, the trough must be reached. No, the economy could decline quickly and bypass recession.
Accepted Solution
A:
yes, a Depression is really the same as a Recession, just worse.
so a Recession is when the economy is not doing so good and unemployment may remain at a high level, if it gets worse, then the "worse recession" is called a Depression.
kinda like the difference between a storm and a hurricane, both are windy and wet, one is more destructive than the other.