A depression is a dramatic downturn in economic activity, in conjunction with a sharp fall in growth, employment, and production. In this video, you'll learn a simple way to understand this concept through an easy and brief explanation. During these difficult times, consumer confidence and investments decrease. And this causes the economy to shut down, resulting in increases in unemployment or drops in credit. Likely leading to a bear market in stocks, along with asset volatility and falling currency values. There’s little to no inflation and sometimes even deflation.