What Is the Difference Between Recession and Depression in an Economy

question 48

Essay

What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.

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Definitions:

Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services to government institutions.

Federal Reserve District Banks

The 12 regional banks of the Federal Reserve System in the United States, each responsible for implementing the central bank's monetary policy within its specific district.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing U.S. monetary policy and financial institutions.

Congress

The national legislative body of a country, particularly in the United States, consisting of two houses: the Senate and the House of Representatives.