Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: Consequences of inflation for consumers, workers, producers/firms and the economy
Learning Objective/s:
  • Describe how inflation affects purchasing power and spending decisions of consumers.
  • Explain the impact of inflation on nominal and real wages and employment for workers.
  • Analyse how firms adjust prices, costs, and investment decisions in response to inflation.
  • Evaluate the broader macro‑economic consequences of inflation, including interest rates, trade balance and expectations.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handout with the summary table of consequences
  • Calculator or spreadsheet software
  • Recent inflation data sheets (CPI figures)
  • Interactive quiz platform (e.g., Kahoot) for exit ticket
 Introduction:
Begin with a brief news clip showing recent price hikes in everyday items to hook students. Ask them what they already know about price indices and how they track price changes. Explain that by the end of the lesson they will be able to identify and explain the specific consequences of inflation for consumers, workers, firms and the overall economy.
Lesson Structure:
  1. Do‑now (5'): Students list three products that have become more expensive this month and discuss why.
  2. Mini‑lecture (10'): Define inflation, present the CPI formula, and show a short graph of recent inflation trends.
  3. Group analysis (15'): Each group receives a stakeholder (consumer, worker, firm, economy) and uses the handout to create a poster of positive and negative impacts.
  4. Whole‑class sharing (10'): Groups present their posters; teacher highlights connections between groups.
  5. Case‑study simulation (15'): Using real CPI data, students calculate the change in real wages and decide whether a firm should pass on higher costs or absorb them.
  6. Check for understanding (5'): Exit ticket via Kahoot – one sentence describing the most significant macro‑economic consequence of inflation.
Conclusion:
Recap the key ways inflation impacts each economic group and the ripple effects on the broader economy. Collect the exit tickets and remind students to reflect on today’s content by finding a recent news article on inflation and writing a short paragraph on its real‑world implications for homework.