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A prolonged economic contraction is called?
A prolonged economic contraction is often referred to as a recession. Recessions are periods of negative growth in the economic cycle. This often affects a nation's GDP, income, and consumer spending habits, as well as the cost of goods. Governments usually take steps to try to stimulate the economy to end a recession. It is important to note that a lengthy recession is often referred to as a depression given its drastic effects on a nation's economy.