Real world examples (Econ)

Global Energy Price Shock (2022–23)

Oil and gas prices rose sharply following the Russia–Ukraine conflict. UK inflation exceeded 10%, production costs increased, and economic growth slowed. Useful for inflation, cost-push inflation, negative supply shocks, and AS analysis.

COVID-19 Pandemic (2020–21)

Lockdowns reduced consumer spending, investment, and output. Governments increased spending and central banks cut interest rates. Useful for recession, unemployment, fiscal policy, monetary policy, AD falls, and economic recovery.

UK Interest Rate Rises (2021–24)

The Bank of England increased interest rates from 0.1% to over 5% to reduce inflation. Higher borrowing costs reduced spending and investment. Useful for monetary policy, inflation control, aggregate demand, and economic growth.

Global Financial Crisis (2008–09)

The collapse of major banks led to a severe recession. UK GDP fell by around 6% from peak to trough, unemployment rose above 8%, and the Bank of England cut interest rates to 0.5%. Affected economic growth, unemployment, aggregate demand, monetary policy, and financial stability.