Lesson Plan

• Describe what government spending is and why it changes.
• Explain the direct and indirect effects of changes in government spending on different sectors of the economy.
• Calculate the multiplier effect using the given formula and interpret its significance.
• Evaluate potential unintended consequences such as inflation, higher public debt and crowding‑out.
• Apply knowledge to a case study (UK fiscal stimulus 2022) to assess short‑term and medium‑term outcomes.

• Projector or interactive whiteboard
• Slide deck summarising key concepts
• Printed worksheet with sector table and multiplier calculations
• Case‑study handout (UK 2022 fiscal stimulus)
• Markers and flip chart for group discussion
• Exit‑ticket slips

Begin with a quick poll: “If the government suddenly increased spending on roads, what would you expect to happen in the economy?” Connect to prior learning on aggregate demand and set the success criteria – students will identify direct and indirect effects, calculate the multiplier and assess possible side‑effects.

1. Do‑now (5’) – Students answer the poll question on sticky notes; teacher collects responses.
2. Mini‑lecture (10’) – Define government spending, reasons for changes, and display the sector impact table.
3. Group activity (12’) – Using the worksheet, students map direct effects on an assigned sector and discuss indirect effects.
4. Multiplier demonstration (8’) – Calculate the example with MPC = 0.8 and discuss the economic significance.
5. Case study analysis (10’) – Pairs examine the UK 2022 stimulus handout, identify outcomes and unintended consequences, then present brief findings.
6. Whole‑class synthesis (5’) – Summarise key points on a flip chart.
7. Check for understanding (5’) – Quick quiz (Kahoot or paper) covering the objectives.

Recap the chain from government spending to sector impacts, multiplier amplification and possible side‑effects. Students complete an exit ticket stating one direct effect and one potential unintended consequence. For homework, they research a recent government spending announcement in their own country and write a short paragraph evaluating its likely economic impact.