Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: formulae for and calculation of multiplier in a closed and open economy, with and without a government sector
Learning Objective/s:
  • Describe the multiplier concept and its economic significance.
  • Derive the multiplier formula for closed and open economies with and without government.
  • Calculate the multiplier using given MPC, MPT and MPM values.
  • Analyse how changes in leakages affect the size of the multiplier.
  • Apply the formula to a numerical example and interpret the result.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Handout with multiplier formula table
  • Calculator or spreadsheet
  • Sample worksheet with practice problems
 Introduction:
Begin with a quick poll: “If the government spends an extra £1 million, how much do you think total national income will change?” Connect to the previous lesson on aggregate demand and leakages. State that today’s success criteria are to derive and use the multiplier formula in four different economy types.
Lesson Structure:
  1. Do‑now (5’) – Students answer the poll on sticky notes; teacher records responses.
  2. Mini‑lecture (15’) – Review circular flow, introduce the multiplier concept, derive the closed‑economy, no‑government formula.
  3. Guided derivation (10’) – Work through the closed‑economy with government formula on the board, highlighting tax leakage.
  4. Group activity (15’) – Teams calculate multipliers for open‑economy scenarios using provided MPC, MPT, MPM values; fill handout.
  5. Numerical example walkthrough (10’) – Teacher demonstrates the £10 m government‑spending example; students verify calculations.
  6. Quick check (5’) – Exit ticket: write the multiplier formula for an open economy with government and state one policy implication.
Conclusion:
Summarise that the multiplier equals one divided by the sum of all leakages, so more leakages mean a smaller multiplier. Collect exit tickets and remind students to complete the worksheet for homework, practising each formula with different parameter values.