Lesson Plan

• Describe what automatic stabilisers are and identify their main components.
• Explain how automatic stabilisers operate during economic downturns and expansions.
• Analyse the effect of automatic stabilisers on the fiscal multiplier.
• Evaluate the contribution of automatic stabilisers to sustainable and inclusive growth.
• Critically assess the limitations of automatic stabilisers.

• Projector and screen
• PowerPoint slides with definitions and diagrams
• Printed handout containing AD‑AS diagram and multiplier table
• Worksheets for multiplier calculations
• Calculator for each pair
• Sticky notes for exit tickets

Start with a quick poll: “What happens to tax revenue when many people lose jobs?” Link responses to students’ prior knowledge of progressive taxes and welfare benefits. State the success criteria – by the end of the lesson students will be able to describe, analyse, and evaluate the role of automatic stabilisers in promoting sustainable growth.

1. Do‑now (5’) – Students write on a sticky note the impact of falling incomes on tax revenue; collect responses.
2. Mini‑lecture (10’) – Define automatic stabilisers, present components (progressive tax, unemployment benefits, other transfers) with slides.
3. Diagram activity (10’) – In pairs, annotate a supplied AD‑AS diagram to show how a recession shift is softened by stabilisers.
4. Multiplier practice (10’) – Worksheet: calculate the basic multiplier (k) and the adjusted multiplier (k_AS) using given MPC values.
5. Group discussion (10’) – Evaluate how stabilisers contribute to macro‑economic stability, fiscal prudence, and social cohesion; discuss limitations.
6. Check for understanding (5’) – Quick quiz (Kahoot or show of hands) on key concepts.
7. Exit ticket (5’) – Write one way automatic stabilisers support sustainable growth; hand in sticky note.

Recap the definition, operation, and impact of automatic stabilisers on the fiscal multiplier and sustainable growth. Collect exit tickets to gauge understanding, and assign homework: research a recent government fiscal response and assess how its automatic components helped stabilise the economy.