What economic crisis is characterized by a prolonged period of recession and high unemployment?

The economic crisis characterized by a prolonged period of recession and high unemployment is a depression. A depression is typically more severe and persistent than a standard recession, often resulting in significant declines in economic activity, widespread unemployment, and lasting impacts on the economy. It reflects a deep and prolonged downturn that can last for several years, leading to substantial negative effects on individuals, businesses, and the overall economy.

In contrast, an economic downgrade refers to a decline in the quality or rating of an economy but does not necessarily imply the extended duration or intensity of a depression. Stagnation describes a period of slow economic growth and can include high unemployment, but it does not reach the severity characteristic of a depression. Deflation involves a decrease in the general price level of goods and services and can occur alongside a depression, but it is a separate economic concept focused on price rather than economic activity or employment levels.