- The document discusses the differences between a recession and a depression. A recession is a period of declining economic activity, seen in things like falling GDP and rising unemployment. A depression is a more severe and prolonged period of economic decline, usually lasting years rather than months. - While some people argue the current economic situation could be considered a depression due to job losses and hardship, data shows the downturn has lasted 21 months, meeting the technical definition of a recession but not a depression which typically lasts years. - The conclusion recommends having an emergency fund to weather economic downturns, only investing what you can afford, setting financial goals, and noting that while recessions cause hardship, the current one will not last

1. Recession or Depression Beatrice Bussey ENG 1105 Module 6

2. Financial disasters happen and need to be handled with caution. There are lessons to be learnt on what aspects of your money you can control. The stock market is up and down and money has been lost but does that mean we are in a recession or even a depression? What is a recession? What is a depression ? Abstract

3. Business cycle or economic cycle are the terms used by some economist to describe the activity flow of the economy. These cycles can last months or years. The cycles are measured using the real gross domestic product (GDP), which is similar to the cost of living. History

4. The peak is the end of the last cycle. Contraction is when the GDP is falling which usually means recession. The trough is the very bottom of the recession. Expansion is when GDP rise again.

5. A recession is when the real gross domestic product fall. People start to lose their jobs or their hours are cut. It is also hard for people to get hired and investments slow down. The economy ends up in the trough phase because people do not want to buy homes or cars at tough times.

6. A depression is similar to a recession but on a deeper stronger level of hurt. The depression is years. The Great Depression is the most common depression and it lasted ten years. The stock market crashed, unemployment rates went up, and people were homeless.

7. This graph shows annual existing home sales (since 1969) and year end inventory (since 1982). This shows sales are the lowest level since 1997, and inventory is just below the year end record set in 2007. Recession.org

8. Research MethodI conducted a survey using five people. The questions were:1. Do you know what a recession is?2. Do you know what a depression is?3. Are we in either?0 means no idea1-3 some clue4 & up understand very well

9. This survey proved that some people actually know what a recession is and others do not. The same goes for a depression. Some people that loss there job or can not find one would say we are in a depression, because they are being directly affected. According to Kush media we were in an economic downfall for twenty-one months. This means we are in a recession but not necessarily a depression. Results

10. People have lost their jobs and their homes. We are indeed in a recession but it is not the first. This is a problem that can be fixed. Most financial advisers will recommend that everyone have an emergency fund that can pay their bills for at least two years. For people involved in investments only invest what you can afford to. Set long and short term goals. The recession is not here to stay. Conclusion/Recommendation