What term is commonly used to refer to a quick economic decline?

The term that is commonly used to refer to a quick economic decline is "bust." A bust is characterized by a significant downturn in economic activity following a period of expansion, often recognized by a rapid decrease in consumer spending, investment, and overall economic confidence. During a bust, businesses may experience losses, unemployment rates can rise, and the economy may enter a state of contraction.

While "recession" also denotes a period of economic decline, it is typically defined as a more prolonged downturn characterized by two successive quarters of negative GDP growth. "Austerity" refers to government policies aimed at reducing budget deficits during periods of economic downturn, which is often a response to economic troubles rather than a descriptor of a rapid decline itself. "Inflation," on the other hand, is the rate at which the general level of prices for goods and services is rising, indicating a different economic phenomenon that can occur during periods of both growth and economic stress.

Understanding these distinctions helps clarify why "bust" is the most appropriate term for indicating a quick and severe economic decline.