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Unit 3 introduces students to the macroeconomy and how the whole economy functions, how it's measured, and how policymakers respond when things go wrong. These high school economics lesson plans cover GDP, unemployment, inflation, fiscal policy, monetary policy, and the Federal Reserve. Students use real data, simulations, and case studies to understand how macroeconomic indicators connect to everyday life.
How to use this unit
Lessons build on one another and are designed to be taught sequentially. They can also be used as standalone lessons.
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3.1 An Introduction to the Macroeconomy: Circular Flow
Simulating the flow of factors of production, goods and services, and money, students learn about the interdependence of households and firms in a macroeconomy. Watch a video tutorial.
"I've taught the Circular Flow about 100 different ways. By manipulating the pieces of the game, students were able to physically see the changes. It worked very well!" — Alecia A., IN
3.2 Introduction to Macro Indicators & Assessment Preview
Students explore four key macroeconomic indicators and familiarize themselves with the unit assessment structure. Watch a video tutorial.
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3.3 Introduction to Gross Domestic Product (GDP)
Through scenarios and discussions, students learn what constitutes GDP, how it is measured using the expenditure approach, and its value and limitations.
"This was a great lesson about GDP. Students were able to make connections to GDP and the Circular Flow of Economic Activity." — Matt W., IL
3.4 Evaluating GDP as a Measure of Well-Being: Part 1
Using real-world data, students analyze the imperfect relationship between GDP, standard of living, and quality of life.
3.5 Evaluating GDP as a Measure of Well-Being: Part 2
Students categorize and evaluate critiques of GDP as a measure of well-being and apply their knowledge to real-world decision-making scenarios.
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3.6 Thinking About the Labor Force Like an Economist
Students engage in a card-sort activity to understand labor force criteria and unemployment, applying their knowledge to realistic scenarios.
"I love this lesson! Kept the students engaged because they were consistently being asked to think." — Sara H., AL
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3.7 A Closer Look at Unemployment Data
Analyzing text and economic data, students learn about labor underutilization and the limitations of the unemployment rate.
"Loved the addition of the economists and their studies at the end of the slides. Love the retrieval practice at the beginning of each lesson." — Kyle G., AL
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3.8 A Practical Guide to the U.S. Economy: Part 1
Students work on Part 1 (GDP Growth Rate & Unemployment Rate) of the summative assessment.
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3.9 Introduction to Inflation
Using an automotive analogy, students learn about inflation, disinflation, and deflation, and respond to realistic social media posts to apply their knowledge.
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3.10 A Closer Look at Inflation
Students explore the causes and short-run impacts of inflation, linking economic expansion and contraction to macroeconomic indicators.
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3.11 Interest Rates and the Role of Banks
Students learn about commercial banks' role as financial intermediaries, define an interest rate as the price of money, and apply this knowledge to macroeconomic fluctuations.
"It was fantastic! Students completed the practice page on their own and did really well!" — Alecia A., IN
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3.12 Monetary Policy and the Federal Funds Rate
Students analyze past macroeconomic data to predict changes in the federal funds rate and the resulting economic chain reactions.
"I really liked the Fed as a doctor analogy, and my students responded really well to the political cartoon and the video explaining the Federal Funds rate." — Kristen B., TX
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3.13 A Practical Guide to the U.S. Economy: Part 2
Students work on Part 2 (Inflation Rate & Federal Funds Rate) of the summative assessment.
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3.14 An Introduction to Fiscal Policy
Through a board game, students learn the basics of fiscal policy. A debrief exercise and retrieval quiz follow to solidify student understanding of monetary and fiscal policy.
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3.15 Complications of Fiscal and Monetary Policy: Part 1
Students investigate the complexities of monetary and fiscal policy and then assess the extent to which the government should promote economic health.
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3.16 Complications of Fiscal and Monetary Policy: Part 2
Students explore various perspectives on fiscal and monetary policy, analyze sources, and synthesize their findings.
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3.17 Beyond the Big 3: Part 1
Through researching a novel economic indicator, students deepen their understanding of how to evaluate the economy's health, moving beyond the "Big 3" indicators (GDP growth, unemployment, and inflation).
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3.18 Beyond the Big 3: Part 2
Drawing on their research from Lesson 3.17, students script a conversation focused on an economic indicator outside of the "Big 3" (GDP growth, unemployment, and inflation).
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3.19 A Practical Guide to the U.S. Economy: Part 3
Students work on Part 3 (Economic Dashboard) of the summative assessment.
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3.20 A Practical Guide to the U.S. Economy: Part 4
On this final summative assessment day students complete any remaining portions of Part 3 and make final revisions to Parts 1 and 2 of A Practical Guide to the U.S. Economy. Students then complete Part 4 (Reflection) of their assessment.
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