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