Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: consequences of debt
Learning Objective/s:
  • Describe why countries borrow and differentiate types of external debt.
  • Explain how high debt levels affect macroeconomic stability and development outcomes.
  • Analyse debt sustainability using debt‑to‑GDP thresholds and identify signs of a debt trap.
  • Evaluate policy options for managing unsustainable debt.
Materials Needed:
  • Projector and screen for slides/diagrams.
  • Whiteboard and markers.
  • Handout summarising debt‑to‑GDP thresholds and case study.
  • Calculator or spreadsheet software for quick debt‑ratio calculations.
  • Printed copies of the debt‑trap flowchart.
 Introduction:
Begin with a quick poll: “What would you do if your household suddenly owed twice its annual income?” Connect this to national borrowing and outline that today’s success criteria are to identify reasons for borrowing, interpret debt‑to‑GDP ratios, and propose realistic policy responses.
Lesson Structure:
  1. Do‑now (5’) – Students answer the poll question and share examples of government borrowing. (5’)
  2. Mini‑lecture (15’) – Explain reasons for borrowing, types of external debt, and introduce the debt‑to‑GDP formula. (15’)
  3. Data analysis activity (20’) – In pairs, calculate a sample country’s debt‑to‑GDP ratio, compare with thresholds, and discuss implications. (20’)
  4. Case study discussion (15’) – Review the Country X scenario, identify macro and development consequences, and map the debt‑trap cycle on the board. (15’)
  5. Policy response brainstorm (10’) – Groups generate and rank policy options to improve debt sustainability. (10’)
  6. Check for understanding (5’) – Quick quiz (exit ticket) with three short questions. (5’)
Conclusion:
Summarise that unsustainable debt can trigger fiscal strain and social hardship, but targeted policies can break the debt trap. Collect exit tickets, and assign homework to write a brief essay evaluating one policy response for a chosen country.