TOPIC:

THE STAGES OF BUSINESS CYCLE PHAMACEUTICAL INDUSTRY 

Dr.JAGADEESH DALER MVSc

Peak/Boom

TroughR

eco

very

Real

GD

P pe

r yea

r (Eco

nom

ic a

ctivi

ty)

Recession Equilibrium positio

n

Business CycleBusiness Cycle

Time

Reco

very

Pro

speri

ty

Dep

ression

Recovery phaseReal output in the economy is increasing

Unemployment rate is declining

The upswing part of the cycle.

Prosperity phase Real output in the economy is at a high levelUnemployment is low Domestic output may be at its capacityInflation may be high.

Recession phaseReal output is decreasing, Unemployment rate is rising.

As contraction continues, inflation pressure fades.If the recession is prolonged, price may decline (deflation)

Depression phaseLowest point of real GDP

Output and unemployment “bottom out”This phase may be short-lived or prolonged

There is no precise decline in output

Pharmaceutical Business

Pharmaceutical Business Cycle

                                    4.5- 6 years