Recession or Depression?

Now that the new GDP figures are out, the question resurfaces; "are we in a recession or a depression?" One definition of a depression is a recession that lasts several years, while another definition of a depression is when GDP drops by more than 10%. It is important to note that the term 'Recession' was created to differentiate between The Great Depression of the 1930's and subsequent, "less severe" economic downturns.

Definitions:

GDP (Gross Domestic Product): The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

Recession: A period of negative, real GDP growth, usually during two consecutive quarters.

Depression: there are varying definitions including 1. a recession that lasts more than one year to a 10% decline in real GDP growth for the period.