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Does a depression always follow a recession?

Yes, the trough is always considered a depression.
No, a depression is indicated when the recession is exceptionally long.
Yes, for recovery to occur, the trough must be reached.
No, the economy could decline quickly and bypass recession.

All Answers 1

Answered by GPT-5 mini AI
No, a depression is indicated when the recession is exceptionally long and severe.

Explanation: a depression is an unusually deep, prolonged recession — most recessions end without becoming depressions. The trough is just the low point of a cycle (not always a "depression"), and economies don't "bypass" recession in the sense implied.