Lesson Plan

• Define cyclical unemployment and explain its link to the business cycle.
• Identify the main causes of cyclical unemployment.
• Analyse how fiscal and monetary policies can reduce cyclical unemployment.
• Compare cyclical unemployment with frictional and structural unemployment.
• Apply the AD‑AS model to illustrate the impact of a recessionary gap on employment.

• Projector or interactive whiteboard
• PowerPoint slides with AD‑AS diagram
• Printed worksheet (unemployment‑rate calculations)
• Calculator for each student
• Whiteboard markers
• Sticky notes for exit ticket

Start with a quick poll: “When the economy slows, what happens to jobs?” Connect this to prior learning on different types of unemployment. Explain that today students will explore why demand‑driven job loss occurs and how governments respond. Success criteria: students will describe causes, illustrate with an AD‑AS diagram, and evaluate policy options.

1. Do‑now (5'): Students write their poll responses on sticky notes; teacher collects and displays common ideas.
2. Mini‑lecture (10'): Definition, key features, and link to the business cycle using slides.
3. AD‑AS modelling activity (12'): Groups shift the AD curve left/right on a printed diagram and calculate the unemployment rate on the worksheet.
4. Causes discussion (8'): Groups list causes of cyclical unemployment, share with class; teacher summarises.
5. Policy analysis (10'): Case‑study comparison of fiscal vs. monetary responses; class debate on effectiveness.
6. Check for understanding (5'): Kahoot quiz or exit‑ticket where each student states one policy and its expected impact.

Recap that cyclical unemployment arises from insufficient aggregate demand and can be mitigated by expansionary fiscal and monetary measures. Students complete an exit ticket stating one policy and its expected effect on employment. For homework, they research a recent recession and write a short paragraph on how the government addressed cyclical unemployment.