Lesson Plan

• Describe how a recession affects consumers, workers, firms and the government.
• Explain the mechanisms linking reduced income, unemployment and aggregate demand.
• Analyse typical policy responses (fiscal, monetary, automatic stabilisers) used to mitigate recession impacts.
• Evaluate short‑term and long‑term consequences for each economic group.

• Projector and screen
• PowerPoint slides summarising impacts
• Handout with summary table of consequences and policy responses
• Whiteboard and markers
• Calculators (optional)
• Exit‑ticket cards

Start with a quick poll asking students which personal expenses they would cut if their income fell sharply. Connect their answers to prior learning about aggregate demand and the business cycle. State that by the end of the lesson they will be able to identify and compare recession impacts on the four key economic groups and suggest appropriate policy responses.

1. Do‑now (5’) – Students list personal spending cuts; share; teacher links to consumer impact.
2. Mini‑lecture (10’) – Define recession, show macro indicators and circular‑flow diagram.
3. Group analysis (15’) – Four groups each receive a set of consequences; create a poster summarising impacts and typical policy responses.
4. Gallery walk & discussion (10’) – Groups present; teacher highlights interconnections and checks understanding.
5. Application activity (10’) – Case study of a country entering recession; students choose fiscal/monetary tools and justify their choices.
6. Exit ticket (5’) – Write one key consequence for each group and one appropriate policy response.

Recap the main consequences for consumers, workers, firms and the government and the policy levers discussed. Collect exit tickets to gauge understanding. For homework, read the textbook section on automatic stabilisers and write a short paragraph explaining how they operate during a recession.