Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: How fiscal policy measures may enable a government to achieve its macroeconomic aims
Learning Objective/s:
  • Describe the main macro‑economic aims (growth, low unemployment, price stability, external balance, equitable income distribution).
  • Explain how government spending and taxation influence aggregate demand.
  • Analyse the impact of expansionary and contractionary fiscal measures using the fiscal multiplier.
  • Evaluate the advantages, disadvantages and timing lags of fiscal policy.
  • Apply knowledge of automatic stabilisers and discretionary measures to real‑world scenarios.
Materials Needed:
  • Projector or interactive whiteboard for slides/diagrams.
  • Printed handout summarising fiscal‑policy instruments and lags.
  • Worksheet with AD‑AS diagram activities.
  • Calculator for multiplier calculations.
  • Whiteboard and markers.
  • Access to online economic data (e.g., recent budget figures).
 Introduction:
Begin with a quick poll: “What recent government action have you noticed that might affect the economy?” Connect this to prior learning about aggregate demand. Explain that today’s success criteria are to identify fiscal tools, predict their impact on macro‑economic aims, and critique their effectiveness.
Lesson Structure:
  1. Do‑now (5’) – Students list recent fiscal measures from news headlines on sticky notes.
  2. Mini‑lecture (10’) – Define fiscal policy, recap macro‑economic aims, introduce spending vs taxation.
  3. Instrument analysis (12’) – In pairs, use the handout table to match each instrument to its expansionary and contractionary effects; share findings.
  4. Fiscal multiplier demonstration (8’) – Guided calculation using a simple MPC example on the board.
  5. Automatic stabilisers vs discretionary measures (10’) – Group discussion with case studies; create a two‑column chart.
  6. Lags and evaluation (10’) – Teacher presents the four fiscal‑policy lags; students complete a quick quiz (Kahoot or paper).
  7. Diagram activity (8’) – Students sketch AD‑AS shifts for expansionary and contractionary policies and label outcomes.
  8. Exit ticket (5’) – Write one advantage and one limitation of using fiscal policy to achieve a specific macro‑economic aim.
Conclusion:
Summarise how fiscal tools can steer growth, employment, price stability and other aims, but emphasize the importance of timing and multiplier size. Review the exit tickets where students recorded an advantage and a limitation. Homework: research a recent budget announcement and write a brief evaluation of its likely impact on the macro‑economic goals.