Lesson Plan

• Describe the main macroeconomic objectives and how fiscal policy can target each.
• Explain the operation of expansionary and contractionary fiscal policy and the role of the fiscal multiplier.
• Analyse the Laffer curve and evaluate how tax rate changes affect revenue and macroeconomic outcomes.
• Apply the effectiveness criteria to select appropriate fiscal tools for specific objectives.

• Projector and screen
• Whiteboard and markers
• Printed handout of effectiveness tables
• Calculator for multiplier calculations
• Worksheet with case‑study scenarios
• PowerPoint slides summarising the Laffer curve

Begin with a brief news clip on a recent government fiscal announcement to hook interest. Review students’ prior knowledge of the aggregate‑demand equation and the five macroeconomic objectives. State that by the end of the lesson they will be able to evaluate which fiscal tools best achieve each objective.

1. Do‑now (5’) – Quick quiz on macro objectives and the AD identity.
2. Mini‑lecture (10’) – Overview of fiscal policy tools, expansionary vs. contractionary, and the fiscal multiplier (using slides).
3. Group analysis (15’) – Teams examine the effectiveness table, discuss limitations, and annotate key points.
4. Laffer curve activity (10’) – Students sketch the curve, identify left‑ and right‑hand sides, and predict revenue impacts of tax changes.
5. Case‑study application (15’) – Each group proposes a fiscal mix for a given objective, justifying choices with multiplier and Laffer insights.
6. Check for understanding (5’) – Exit ticket: one sentence stating the most suitable fiscal policy for a selected objective.

Summarise how fiscal tools differ in effectiveness across objectives and reinforce the importance of the multiplier and Laffer curve in policy design. Collect exit tickets and assign a homework task to research a recent real‑world fiscal policy and evaluate its likely impact using the concepts learned.