Lesson Plan

• Describe cost‑push inflation and distinguish it from demand‑pull inflation.
• Identify at least five primary causes of cost‑push inflation.
• Explain how rising production costs lead to higher aggregate price levels.
• Analyse the short‑run aggregate‑supply shift caused by cost‑push pressures.
• Evaluate one policy response that can mitigate cost‑push inflation.

• Projector or interactive whiteboard
• Slide deck with key causes and AS‑curve diagram
• Handout containing the cost‑push factors table
• Calculators or spreadsheet software for simple cost calculations
• Whiteboard markers and chart paper
• Exit‑ticket slips

Begin with a quick poll: “When prices rise, is it always because people want more?” Use the responses to highlight that inflation can stem from rising costs. Connect to students’ prior knowledge of demand‑pull inflation covered last week. State that by the end of the lesson they will be able to identify cost‑push causes and explain their impact on the economy.

1. Do‑Now (5'): Short quiz on types of inflation; collect responses.
2. Mini‑lecture (10'): Define cost‑push inflation, present the five main causes using slides.
3. Guided calculation (12'): Work through the oil‑price example; students compute the percentage cost increase with calculators.
4. Group activity (10'): Analyse the cost‑push factors table and draw the leftward shift of the AS curve on chart paper.
5. Class discussion (8'): Link the AS shift to policy options; students suggest which response would be most effective.
6. Check for understanding (5'): Kahoot quiz or exit‑ticket question summarising key ideas.

Recap the definition, main causes, and the mechanism by which higher costs raise the price level. Students complete an exit ticket stating one real‑world example of cost‑push inflation and a policy that could address it. For homework, assign a brief research task: find a recent news article illustrating a cost‑push shock and prepare a one‑minute summary for the next class.