Which approach to the theory-and-research cycle does the following sequence reflect:

(1) specific observations suggest generalizations,
(2) generalizations produce a tentative theory,
(3) the theory is tested through the formation of hypotheses, and
(4) hypotheses may provide suggestions for additional observations

In financial aspects, a depression is a sustained, long haul downturn in monetary movement in one or more economies. it is a more extreme monetary downturn than a recession, which is a slowdown in financial action through the span of a typical business cycle. a depression is an irregular and extreme type of recession. so depression is always followed by recession but it is not correct to state that a depression always follow a recession.