Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Possible conflicts between macroeconomic aims: full employment and stable prices
Learning Objective/s:
  • Describe the short‑run trade‑off between full employment and stable prices using the AD‑AS and Phillips‑curve models.
  • Explain how demand‑pull and cost‑push inflation create conflicts between the two macroeconomic aims.
  • Evaluate the impact of different fiscal and monetary policy tools on employment and inflation.
  • Analyse how supply‑side measures and policy credibility can mitigate the trade‑off.
  • Apply the concepts to a real‑world example (e.g., the UK in the early 1990s) to illustrate policy choices.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handouts of AD‑AS and Phillips‑curve diagrams
  • Worksheet with policy analysis questions
  • Calculators
  • Sticky notes for the opening poll
 Introduction:
Begin with a quick poll: “What happens to prices when unemployment falls?” Connect responses to the previous lesson on aggregate demand. Explain that today’s focus is the tension between achieving full employment and keeping prices stable, and outline the success criteria for the lesson.
Lesson Structure:
  1. Do‑now (5’) – Students write their poll answers on sticky notes; teacher collects and displays a few responses.
  2. Mini‑lecture (10’) – Review the AD‑AS model and the short‑run Phillips curve, highlighting how policy actions shift curves and create trade‑offs.
  3. Guided analysis (15’) – In pairs, examine the policy‑tool table; discuss each tool’s typical effect on employment and inflation, recording observations on a worksheet.
  4. Case study (10’) – Groups analyse the UK early‑1990s example, answering questions about the policy mix used.
  5. Synthesis (10’) – Whole‑class discussion to construct a balanced policy mix on the board, linking demand‑side and supply‑side measures.
  6. Exit ticket (5’) – Each student writes one sentence explaining how supply‑side policies can reduce the employment‑inflation conflict.
Conclusion:
Recap the key points: the short‑run trade‑off illustrated by AD‑AS and the Phillips curve, the role of demand‑pull and cost‑push inflation, and how a mix of policies can address the conflict. Collect exit tickets as a retrieval check. For homework, ask students to research a recent government’s response to rising inflation or unemployment and prepare a brief summary of the policy mix used.