by 
The Curious Bag
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According to an old joke, when other people lose their jobs, the economy is in a recession; when you lose yours, it's a depression. A depression is a severe recession, although economists disagree on precise standards for separating the two.
Expert Insight
The National Bureau of Economic Research, which tracks fluctuations in national business cycles, does not employ a precise definition of an economic recession.
Size
Many economists suggest that a decline in the inflation-adjusted gross domestic product (GDP) of 10 percent or more indicates an economic depression.
Features
Characteristics of economic depressions include sharp declines in investment and economic output, as measured by GDP, coupled with a spike in unemployment.
History
During the Great Depression, from 1929 to 1933, U.S. GDP dropped 30 percent, while unemployment reached 25 percent. The Great Depression was the largest economic downturn in U.S. history.
Prevention/Solution
Governments often respond to depressions by boosting expenditures on goods and services to increase overall demand and to stimulate the economy.
Source:
"Principles of Economics, 3rd ed."; N. Gregory Mankiw; 2003
National Bureau of Economic Research: Business Cycle Dating Procedure FAQs
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