PRC-3 · Chapter 15 · Question 14 of 44
At the very bottom of a severe economic downturn, the economy suffers from prolonged, massive unemployment, widespread bankruptcies, and deeply stagnant demand lasting for years. This deep trough is historically termed a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Depression
Explanation
A depression is an extreme, prolonged recession representing the absolute bottom (trough) of a severe business cycle where economic activity is paralyzed.
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