Lesson Plan

• Describe how labour‑market reforms shift LRAS and affect potential output.
• Explain the main types of supply‑side labour reforms and their expected macro‑economic impacts.
• Analyse the advantages and disadvantages of labour‑market reforms using real‑world examples.
• Apply the formula Y* = A·f(K,L) to evaluate how skill improvements raise potential output.

• Projector and screen
• PowerPoint slides summarising reforms
• Handout with reform table and LRAS diagram
• Whiteboard and markers
• Short case‑study worksheets
• Exit‑ticket cards

Begin with a quick poll: “What would happen if a country could instantly increase the skills of its workforce?” Connect responses to prior knowledge of aggregate supply. State that today’s success criteria are to identify key labour‑market reforms, explain their macro impacts, and link them to potential output.

1. Do‑now (5') – Matching activity: students pair each reform type with its short‑run AD effect using a printed quiz.
2. Mini‑lecture (10') – Present the concept of LRAS rightward shift, show the diagram, and introduce the formula Y* = A·f(K,L).
3. Group analysis (15') – In small groups, students examine the provided impact table, fill out advantages/disadvantages for each reform, and prepare a brief summary.
4. Whole‑class discussion (10') – Groups share findings; teacher highlights connections to productivity and potential output.
5. Check for understanding (5') – Kahoot quiz or exit‑ticket question: “Which reform most directly lowers structural unemployment and why?”

Recap the four ways labour‑market reforms can shift LRAS rightward and the trade‑offs involved. Students complete an exit ticket summarising one advantage and one disadvantage of a chosen reform. Assign homework: write a short paragraph evaluating whether a specific reform would be appropriate for their own country’s economy.