Lesson Plan

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Lesson Plan
Grade: Date: 04/03/2026
Subject: Economics
Lesson Topic: The macroeconomic aims of government: stable prices/low inflation
Learning Objective/s:
  • Describe why stable prices are a key macro‑economic aim.
  • Explain how inflation is measured using the Consumer Price Index.
  • Identify and compare the main causes of inflation.
  • Evaluate the effectiveness and limitations of monetary, fiscal and supply‑side policies for controlling inflation.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with CPI formula and policy tables
  • Handout summarising policy instruments and effects
  • Worksheet for AD‑AS diagram activity
  • Calculators for inflation‑rate calculations
  • Sticky notes for quick polls
 Introduction:
Begin with a quick poll: “What would happen to your weekly budget if prices suddenly rose by 10%?” Students recall previous lessons on price changes and the CPI. Today they will understand why governments aim for low inflation and how policy tools are used to achieve it.
Lesson Structure:
  1. Do‑now (5’) – Students calculate a simple inflation rate from given price data.
  2. Mini‑lecture (10’) – Explain stable prices, the CPI formula, and why low inflation matters.
  3. Interactive discussion (8’) – Explore demand‑pull, cost‑push, and built‑in inflation with real‑world examples.
  4. Policy stations (15’) – Groups rotate through stations on monetary, fiscal, and supply‑side tools, completing a summary table.
  5. AD‑AS diagram activity (10’) – Students sketch shifts showing fiscal tightening and discuss impacts on price level and output.
  6. Check for understanding (5’) – Quick quiz (exit ticket) with two short questions.
Conclusion:
Recap that stable prices protect purchasing power and that governments use a mix of monetary, fiscal and supply‑side policies, each with trade‑offs. Students submit an exit ticket stating which policy they think is most effective and why. For homework, they research a recent real‑world policy action aimed at curbing inflation and prepare a brief summary.