Lesson Plan

• Describe the main monetary, fiscal, supply‑side, exchange‑rate and direct‑control policies used to curb inflation.
• Explain the short‑run and long‑run effectiveness of each policy and typical time‑lags to impact.
• Analyse how a mix of policies can be selected to balance inflation control with growth and employment objectives.
• Evaluate the key trade‑offs (e.g., unemployment vs. price stability) when implementing anti‑inflation measures.

• Projector and screen
• Printed handout of the policy effectiveness table
• Worksheet with a short case‑study for group analysis
• AD‑AS diagram templates
• Calculators
• Whiteboard and markers

Begin with a quick poll: “What would happen to your weekly grocery bill if prices kept rising?” Connect responses to students’ prior knowledge of price changes and the need for stable prices. Explain that today they will explore the toolbox governments use to keep inflation in check and how to judge each tool’s success.

1. Do‑Now (5'): Students list any recent news about rising prices; share briefly.
2. Mini‑lecture (10'): Overview of the five policy categories with key examples (interest‑rate hikes, fiscal restraint, supply‑side reforms, exchange‑rate moves, price/wage controls).
3. Table analysis (12'): In pairs, students examine the provided effectiveness table, highlighting short‑run vs. long‑run impacts and time‑lags.
4. Group activity (15'): Each group receives a short case‑study (demand‑pull vs. cost‑push inflation) and decides on an optimal policy mix, justifying choices.
5. Class discussion (8'): Groups present recommendations; teacher highlights trade‑offs and the importance of policy coordination.
6. Diagram sketch (5'): Students quickly draw an AD‑AS shift illustrating the effect of their chosen policy mix.

Summarise the main take‑aways: monetary policy is fastest, fiscal adds weight but is slower, supply‑side reforms secure long‑run stability, and direct controls are short‑term fixes with drawbacks. Ask students to write one exit‑ticket: “Which policy would you prioritize in a small open economy and why?” Assign homework to research a recent real‑world anti‑inflation measure and evaluate its effectiveness.