Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: effect of fiscal, monetary, supply-side, protectionist and exchange rate policies on the balance of payments
Learning Objective/s:
  • Describe how fiscal policy affects the balance of payments through income and import demand.
  • Explain the transmission mechanisms of monetary policy on the current and capital accounts.
  • Analyse the short‑run and long‑run impacts of supply‑side and protectionist policies on the BoP.
  • Evaluate the effectiveness and side‑effects of exchange‑rate interventions in correcting BoP disequilibrium.
Materials Needed:
  • Projector and slide deck summarising each policy.
  • Whiteboard and markers.
  • Handout with a comparative table of policy effects.
  • Sample exam question sheet.
  • Calculators (optional).
 Introduction:
Begin with a quick poll: Which policy would you first use to fix a large current‑account deficit? Review previous lessons on the current account and exchange‑rate fundamentals. Today’s success criteria: you will be able to explain, compare and evaluate how fiscal, monetary, supply‑side, protectionist and exchange‑rate policies influence the balance of payments.
Lesson Structure:
  1. Do‑now (5’) – students match policies to BoP components on a worksheet.
  2. Mini‑lecture (10’) – overview of each policy’s transmission mechanism using slides.
  3. Guided analysis (15’) – work in pairs to fill the summary table for a given country scenario.
  4. Case study discussion (10’) – evaluate a combination of monetary and exchange‑rate policies from the sample exam question.
  5. Diagram practice (10’) – sketch the Mundell‑Fleming model showing fiscal vs monetary impact under flexible rates.
  6. Check for understanding (5’) – quick quiz via Kahoot or an exit ticket.
Conclusion:
Summarise how each policy moves the current and capital accounts and the trade‑offs involved. For the exit ticket, write one advantage and one drawback of using exchange‑rate depreciation to correct a deficit. Homework: complete the worksheet extending the analysis to supply‑side reforms and protectionist measures.