Concept of recession
A recession is meant by an economic decline.It is an activity, which is spread from corner to corner the economic condition of more than three months.The studies of macro economies show us that a recession is generated due to decline in Gross domestic product (GDP), Gross national product (GNP), inflation, deflation, stagflation and hyperinflation. The economists declare these conditions as the economic collapse.
Model of depression
But the depression is known as the most devastating economical condition in the region.It is remembered as the great slump in the world marketing system.During the depression phase, all the economic activities around the world are turned into absolute downward slope.In the historical perspective, the United States is firstly come into mind about the great depression during the period of 1929.At that time all the US stock market was dramatically destroyed due to countless inflation, deflation, hyper inflation and stagflation as well as many other factors.
Demand and supple factor
A recession can take place in the national cultural system because of the excessive supply and demand of things.It is occurred at time, when the industrial production is made on a huge level by employing the labor and machine.But the demands of the consumers do not come up according to the supply conditions.Therefore the excessive supply factor would be reduced and slump.
