An economic crisis refers to a period of severe financial instability or downturn in an economy, characterized by high unemployment rates, decreased production, and reduced consumer spending.
Related terms
Stock Market Crash: The sudden collapse of stock prices on Wall Street in October 1929 that triggered the Great Depression.
Bank Failures: When banks are unable to meet demands for withdrawals due to insolvency or lack of liquidity.
Dust Bowl: A severe drought combined with poor farming practices that caused massive dust storms in agricultural areas during the Great Depression.