Which of the following describes what happens during a depression?

During a depression, one of the most significant characteristics is extremely high unemployment. Economic depressions are severe downturns in economic activity that last for an extended period. During these times, businesses may close or operate at reduced capacity, leading to widespread job losses.

High unemployment is a key indicator of a depression, as many people find themselves unable to secure jobs, resulting in a significant rise in the unemployment rate. This situation contributes to decreased consumer spending, further exacerbating the economic downturn.

In contrast, stable economic growth would indicate a healthy economy, which is not the case during a depression. Low inflation rates may be present in some contexts during a depression, though they can also lead to deflation, where prices drop due to decreased demand. A booming stock market generally reflects positive economic sentiment, which stands in stark contrast to the reality of a depression, characterized by investor pessimism and falling stock prices.