Why was the 2007 to 2009 recession in the United States not classified as a depression?
A) Although unemployment was high, output also was high, so the event did not meet the criteria for a depression.
B) Prices were falling in 2007 to 2009, but inflation must be present for the classification of depression.
C) From 2007 to 2009, the number of jobs rose even though the unemployment rate rose.
D) The decrease in output and increase in unemployment were not severe enough to warrant the classification.

Question

Quizplus · Accepted Answer

The 2007 to 2009 recession, often referred to as the Great Recession, was characterized by a significant decrease in economic activity across the economy, lasting more than a few months. However, it was not classified as a depression because the decrease in output and the increase in unemployment, while severe, did not reach the extreme levels typically associated with a depression. Depressions are marked by more profound and longer-lasting declines in economic activity.

Why Was the 2007 to 2009 Recession in the United