Popular Terms
Lowest point in an economic cycle characterized by (1) reduced purchasing power, (2) mass unemployment, (3) excess of supply over demand, (4) falling prices, or prices rising slower than usual, (5) falling wages, or wages rising slower than usual, and (6) general lack of confidence in the future. Also called a slump, a depression causes a drop in all economic activity. Major depressions may continue for several years, such as the Great Depression (1930-40) that had worldwide impact. See also recession.

Use 'depression' in a Sentence

Sarah sighed, staring at the layoff notice. Since the economy had fallen into a depression, many of her friends had lost their jobs, and now so had she.
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During the economic depression, the stock market plummeted, many businesses were forced to close their doors, and millions of people lost their jobs.
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The depression left the housing market in poor condition, which forced Henry to lay off half of his work force.
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