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Macroeconomics Real-World Examples

8 IB Economics case studies in macroeconomics, each with the syllabus topics it covers, evaluation points for both sides, and the key terms to define.

Airplane, freight truck and telephone network representing U.S. deregulation

Market-Based Supply-Side Policy

U.S. Deregulation of Transportation and Telecommunications

United States1978 to 1996

U.S. reforms opened airlines, trucking and telecommunications to more competition, lowering many prices while creating new trade-offs.

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U.S. dollar relief payments and government support during the COVID-19 economic downturn

Expansionary Fiscal Policy

U.S. COVID-19 Fiscal Relief Response

United States2020 to 2021

The U.S. used large fiscal relief packages during COVID-19 to support incomes, employment and aggregate demand during a severe downturn.

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Bank of Japan building with an upward interest-rate symbol

Contractionary Monetary Policy

Bank of Japan Interest Rate Hikes in 2025

Japan2025

The BOJ raised interest rates twice in 2025 as wages and inflation strengthened, reducing monetary stimulus after years of very low rates.

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European Central Bank building with a downward interest-rate symbol

Expansionary Monetary Policy

ECB Interest Rate Cuts in 2025

Euro Area2025

The ECB cut interest rates four times in early 2025 as inflation neared 2%, making monetary policy less restrictive and supporting demand.

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UK transport, energy and public infrastructure under construction

Interventionist Supply-Side Policy

UK 10 Year Infrastructure Strategy

United Kingdom2025 to 2035

The UK committed at least £725 billion to infrastructure over a decade, aiming to improve productivity, public services and long-run growth.

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Japanese government spending flowing to households, infrastructure and businesses to stimulate the economy.

Expansionary Fiscal Policy

Japan's 2025 Economic Package: Expansionary Fiscal Policy

Japan2025–2026

Japan launched a large fiscal package using spending and tax relief to support households, demand and long-term investment.

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Romanian government budget with higher taxes and restrained public spending reducing aggregate demand.

Contractionary Fiscal Policy

Romania's 2025–26 Fiscal Consolidation: Contractionary Fiscal Policy

Romania2025–2026

Romania raised taxes and froze public wages and pensions to reduce its large budget deficit, weakening aggregate demand in the process.

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German public investment in railways, digital networks, energy infrastructure and schools financed through a long-term infrastructure fund.

Expansionary Fiscal Policy

Germany's €500bn Infrastructure Fund: Fiscal Policy and Long-Run Growth

Germany2025–2036

Germany created a €500bn infrastructure fund to raise public investment, supporting aggregate demand now and productive capacity over time.

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