An economic crisis is a situation where the economy experiences a sudden downturn, leading to significant financial instability. This can result from various factors, such as high unemployment, falling consumer confidence, or a collapse in the banking system. Economic crises can affect individuals, businesses, and governments, often leading to recession or depression. During an economic crisis, key indicators like GDP may decline, and stock markets can experience sharp drops. Governments often respond with measures such as stimulus packages or monetary policy adjustments to stabilize the economy. Historical examples include the Great Depression of the 1930s and the 2008 financial crisis.