Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: government spending
Learning Objective/s:
  • Describe the role of government spending in the circular flow of income.
  • Explain how changes in government spending affect aggregate demand and output.
  • Calculate the fiscal multiplier using given MPC and MPM values.
  • Analyse short‑run and long‑run implications of increased government spending, including inflation and crowding‑out effects.
Materials Needed:
  • Projector and screen for diagram display
  • Whiteboard and markers
  • Printed handout of the circular‑flow diagram
  • Calculator or spreadsheet for multiplier calculations
  • Worksheets with practice questions
 Introduction:
Begin with a quick poll: “What happens to the economy when the government builds a new road?” Connect to prior learning on the circular flow of income, reminding students of household and firm sectors. Explain that today’s success criteria are to identify where government spending fits, compute its multiplier, and evaluate its macro‑economic effects.
Lesson Structure:
  1. Do‑now (5’) – Students answer a short question on the circular flow on a sticky note.
  2. Mini‑lecture (10’) – Review sectors and introduce government spending, using a projected diagram.
  3. Guided calculation (12’) – Work through the fiscal multiplier example (MPC = 0.8, MPM = 0.1) together.
  4. Group activity (15’) – Teams analyse a scenario of increased G, discuss short‑run boost vs long‑run crowding‑out, and complete a worksheet.
  5. Class discussion & checking understanding (8’) – Share findings, address misconceptions, and run a quick Kahoot quiz.
  6. Summary & exit ticket (5’) – Students write one key takeaway and one lingering question on a slip.
Conclusion:
Recap the injection of government spending into the circular flow and its impact on aggregate demand. Use exit‑ticket responses to confirm understanding of the multiplier and potential side effects. Assign homework: complete a worksheet calculating multipliers for different MPC/MPM values and prepare a brief paragraph on how timing lags affect fiscal policy.