An economic depression is a prolonged period of significant decline in economic activity across the economy. It is characterized by high unemployment rates, reduced consumer spending, and a drop in industrial production. Depressions can last for several years and often follow a recession, which is a shorter-term economic downturn. During a depression, businesses may close, and many people may lose their jobs, leading to widespread financial hardship. Governments often respond with various measures, such as stimulus packages or changes in monetary policy, to help revive the economy and support those affected. Historical examples include the Great Depression of the 1930s.