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Answer:
A depression is a prolonged recession.
Recessions are a natural part of the business cycle.
GDP that has been adjusted for inflation is the basis for measuring the business cycle
Explanation:
A depression is a prolonged recession
Whereas a recession could last between 6 to 18 months, depression may last up to a decade or beyond.
Both recession and depression are periods of very low or negative economic growth. As a depression last longer, its effects are devastating. Depression is characterized by high unemployment rates, reduced trade, and bankruptcies.
Recessions are a natural part of the business cycle.
A business cycle is a natural rise and a fall in production output in an economy over time. A business cycle consists of four main phases that occur at irregular intervals.
Recession refers to a period of economic contraction. At a recession, the GDP is static, growing very low rate, or has negative growth. A high level of unemployment characterizes this period. Reduced incomes are realized in the economy. Like other phases in the business cycle, a recession occurs naturally.
GDP that has been adjusted for inflation is the basis for measuring the business cycle
A business cycle describes the increase and decreases in economic production in the country over time. Economists will use GDP to determine if an economy is growing or contracting.
GDP is a measure of the total goods and services produced in an economy in a period. To get more accumulate results, economists will adjust GDP for inflation and get real GDP.
Real GDP becomes the basis for a rise of fall in production output. Consequently, real GDP is the base for measuring the economic cycle.
Answer:
Recessions are a natural part of the business cycle.
A depression is a prolonged recession.
GDP that has been adjusted for inflation is the basis for measuring the business cycle.
Explanation:
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