Lesson Plan

• Describe the two main types of macro‑economic policy (fiscal and monetary) and other policy levers.
• Explain how changes in fiscal, monetary, exchange‑rate and trade policies influence business decisions such as investment, pricing and risk management.
• Analyse a real‑world fiscal stimulus case to evaluate strategic responses by firms.
• Apply a simple calculation to assess the financial impact of an interest‑rate change on borrowing costs.

• Projector or interactive whiteboard
• PowerPoint/Google Slides presentation
• Handout summarising policy tools and business impacts
• Calculator worksheets for interest‑rate calculations
• Case‑study printout (fiscal stimulus example)
• Whiteboard and markers

Begin with a quick poll: “What recent government announcement have you heard that might affect businesses?” Connect this to prior knowledge of fiscal and monetary policy. Outline that by the end of the lesson students will be able to describe policy tools, explain their business impacts, and evaluate a case study.

1. Do‑now (5’) – Exit‑ticket style questions on the difference between fiscal and monetary policy.
2. Mini‑lecture (10’) – Present definitions, policy tools, and direct effects on business using slides and the provided table.
3. Group activity (15’) – Each group examines one policy tool, fills a worksheet linking the tool to investment, pricing, cost‑management and risk decisions.
4. Case‑study discussion (15’) – Analyse the £20 billion infrastructure stimulus; identify short‑ and medium‑term impacts and propose strategic responses.
5. Calculation practice (10’) – Students compute interest‑cost savings from a rate drop (6% → 4%) and discuss how the saving could be re‑allocated.
6. Summary & check for understanding (5’) – Teacher recaps key points and asks two rapid‑fire questions to confirm mastery.

Review the chain from government policy → macro‑economic indicators → business decisions, emphasizing the need for continual monitoring. Students complete an exit ticket stating one way a business might respond to a change in interest rates. For homework, assign a short essay analysing how a recent change in VAT could affect a retail chain’s pricing strategy.