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A __________ is a very severe recession that is usually accompanied by a decline in the average level of prices.

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Answer: Depression

Explanation: In simple words recession means decline in economic activity.

It generally occurs due to decrease in spending.

Depression on the other hand is a more severe kind of recession as it is long term in nature. Depression can lead to decline in consumer confidence which can further lead to decrease in investments, thus, forcing economy to shut down.

Depression can cause severe unemployment, debt defaults and diminish output etc.

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