What term is used to describe the prolonged economic downturn that began in 1929?

The term that describes the prolonged economic downturn that began in 1929 is the Great Depression. This period is characterized by widespread unemployment, significant declines in consumer demand, and a sharp decrease in industrial output. It lasted throughout the 1930s and had a profound impact on economies around the world. The Great Depression led to a fundamental transformation in economic theory and policy, prompting government interventions and reforms that aimed to stabilize and stimulate economies.

Other terms like recession typically refer to shorter-term economic slowdowns, while inflation denotes a rise in prices and a decrease in purchasing power. Market correction describes a short-term drop in stock prices after a period of growth, which does not encompass the extensive and lasting impact of the Great Depression. Therefore, "Great Depression" accurately represents the severity and duration of the economic challenges that started in 1929.