Lesson Plan

• Describe how a decrease in aggregate demand can lead to a recession.
• Explain how reductions in the quantity of resources affect potential output.
• Analyse the impact of declining resource quality on short‑run supply.
• Apply AD‑AS diagram shifts to identify the type of recession.
• Evaluate appropriate policy responses for each cause.

• Projector and screen for AD‑AS diagrams
• Whiteboard and markers
• Handout summarising the three recession causes and diagrams
• Worksheet with AD‑AS shift exercises
• Calculator for GDP calculations (optional)

Begin with a quick poll: “What do you think triggers a recession?” Connect responses to prior knowledge of GDP and aggregate demand. State that today’s success criteria are to identify three distinct recession causes and match each to the correct AD‑AS shift.

1. Do‑now (5') – Quiz on recession definition and AD components.
2. Mini‑lecture (10') – Decrease in total demand; illustrate AD left‑shift.
3. Group activity (12') – Case‑study analysis of demand‑side shocks; complete worksheet.
4. Mini‑lecture (8') – Decrease in quantity of resources; show LRAS left‑shift.
5. Pair discussion (10') – Real‑world examples of labour/capital reductions; report back.
6. Mini‑lecture (8') – Decrease in quality of resources; demonstrate SRAS left‑shift.
7. Synthesis (10') – Complete summary table; discuss appropriate policy responses.
8. Exit ticket (5') – Write one cause of recession and the most suitable policy action.

Recap the three recession mechanisms and their diagrammatic shifts, highlighting how policy differs for demand‑ versus supply‑side shocks. Collect exit tickets as a retrieval check and assign a short homework: students must find a recent news article illustrating one of the three causes and propose a policy response.