The World Book Encyclopaedia describes a Depression, in economics as being a deep, extended slump in total business activity. Buying and selling drop during a depression causing a decline in production, prices, income, and employment. Money becomes scarce, many businesses fail and many workers lose their jobs. This kind of depression can hit a single industry, a region, a nation, or even the world. This all repeats itself in the depression cycle and occurs when unemployment rises. Unemployed workers have less money to spend, leading to further drops in sales, production, income, and employment. The slump feeds on itself over and over again, becoming progressively worse until business activity eventually picks up.
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