Recession: This term refers to a significant decline in economic activity over two consecutive quarters (six months). It is characterized by reduced production levels, increased unemployment rates, and decreased consumer spending.
Depression: This term represents a severe and prolonged economic downturn characterized by high unemployment rates, significant declines in GDP, and widespread business failures.
Fiscal stimulus: This term refers to government policies aimed at boosting economic activity during times of recession or stagnation. It often involves increased government spending or tax cuts to stimulate demand.