depression

Lowest point in an economic cycle characterized by (1) reduced purchasing power, (2) mass unemployment, (3) excess of supply over demand, (4) falling prices, or prices rising slower than usual, (5) falling wages, or wages rising slower than usual, and (6) general lack of confidence in the future. Also called a slump, a depression causes a drop in all economic activity. Major depressions may ...

Sarah sighed, staring at the layoff notice. Since the economy had fallen into adepression, many of her friends had lost their jobs, and now so had she.