Consider the following:
1. General fall in demand
2. General rise in inflation
3. General rise in unemployment
4. General price cuts by producers of goods and services
Which among the above traits can be used to identify a “depression” in the economy?

Answer: [D] Only 1, 3 & 4

The key traits of depression are – general fall in demand because of low economic activities; low inflation; low employment rates; rising unemployment and price cuts by industries to sustain their business.

This question is a part of GKToday's Integrated IAS General Studies Module