Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: calculation of: average and marginal propensities to save (aps and mps)
Learning Objective/s:
  • Describe the concepts of average and marginal propensity to save.
  • Calculate APS and MPS from given income, consumption, and saving data.
  • Explain the relationship between APS/MPS and APC/MPC.
  • Analyse how changes in APS/MPS affect the circular flow and aggregate demand.
  • Apply the formulas to a numerical example and interpret the results.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with formulas and diagrams
  • Printed worksheet with numerical data table
  • Calculator or spreadsheet software
  • Whiteboard markers and erasers
 Introduction:
Begin with a quick poll: “What do you do with any money left after you spend?” Connect this to prior knowledge of consumption and saving, then state the success criteria – students will compute APS and MPS and explain their macro‑economic significance.
Lesson Structure:
  1. Do‑now (5’) – short recall quiz on Y = C + S.
  2. Mini‑lecture (10’) – introduce APS and MPS definitions and formulas with slides.
  3. Guided practice (12’) – work through the two‑period example on the board, calculate APS for each period.
  4. Pair activity (10’) – using the worksheet, calculate MPS and discuss its link to MPC.
  5. Class discussion (8’) – relate propensities to the circular flow and explore policy implications.
  6. Formative check (5’) – exit ticket: one sentence stating why APS = MPS matters for the multiplier.
Conclusion:
Recap that APS shows the average share of income saved while MPS shows the response of saving to an income change, both influencing aggregate demand. Students complete the exit ticket and are assigned a brief problem set to calculate propensities for a new dataset.