Lesson Plan

• Describe the concept of demand‑pull inflation and how it differs from cost‑push inflation.
• Identify the main drivers that shift aggregate demand rightward.
• Explain the AD‑AS diagram changes that illustrate demand‑pull inflation.
• Analyse real‑world examples and predict short‑run effects on price level and output.
• Evaluate appropriate policy responses to curb demand‑pull inflation.

• Projector or interactive whiteboard
• Slides with AD‑AS diagrams
• Printed worksheet for diagram labeling
• Calculator for inflation‑rate calculations
• Case‑study handouts (e.g., post‑WWII UK, US 1990s)
• Markers and chart paper for group mind‑map

Begin with a quick poll: “What do you think drives prices up quickly?” Connect responses to prior knowledge of inflation types. State that today’s success criteria are to explain demand‑pull inflation, illustrate it on the AD‑AS model, and suggest realistic policy actions.

1. Do‑now (5’) – short quiz on inflation types to activate prior knowledge.
2. Mini‑lecture (10’) – definition of demand‑pull inflation and its key drivers using slides.
3. Diagram activity (12’) – students label an AD‑AS graph showing the rightward AD shift and calculate the resulting inflation rate.
4. Step‑by‑step mechanism (8’) – teacher walks through the six‑step process; students complete a flow‑chart on their worksheet.
5. Case‑study discussion (10’) – groups analyse the post‑WWII UK example and present findings.
6. Policy‑response matching game (8’) – match fiscal/monetary tools to expected AD effects.
7. Exit ticket (5’) – write one sentence: “What would happen to AD if taxes are increased?”

Recap the definition, drivers, and AD‑AS illustration of demand‑pull inflation, highlighting the policy tools discussed. Collect exit tickets to gauge understanding, and assign homework: research a recent news article showing demand‑pull inflation and prepare a brief summary.