A depression can be defined as:

A) a mild reduction in total production coupled with a rising unemployment rate that lasts for several years.
B) a mild decline in total production that lasts less than six months.
C) a severe fall in stock prices that causes financial panic and lasts for several years.
D) a severe reduction in total production coupled with high unemployment that lasts for several years.
E) a decline in government spending and taxes that lasts for several months.

Depression

A prolonged period of significant decline in economic activity and employment, more severe than a recession, marked by long-term unemployment and financial distress.

Stock Prices

Stock prices represent the current market value of a share of a company's stock, determined by the supply and demand for that stock in the marketplace and reflecting investor perceptions of the company's future prospects.

Unemployment

The condition of being jobless and actively seeking work, often measured as a percentage of the labor force and used as an indicator of economic health.