Download IB Economics Scheme of Work for Macro

IB Economics Scheme of Work for Macro
Syllabus ref.
Section 2.1 The
Level of overall
economic activity
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should
be able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Economic activity
The circular flow of income
model
Brainstorm task: in pairs, write
down what you think are the
economic objectives of a
government (make sure they
understand what the word
‘objective’ means)
ECC
Chapter 13 pages 155-168
KEY WORDS: unemployment;
inflation; balance of payments;
equitable distribution of income;
national income; economic
growth; fiscal policy; monetary
policy; supply-side policies,
circular flow of income and
expenditure, leakages /
withdrawals, injections
AS/IB1
https://www.youtube.com/watch
?v=_DmyOHPHg0k&index=1&li
st=PLWeicFreBUYDlaLppnRTZ
pwgBASflf4lU
• Describe, using a diagram, the
circular flow of income between
households and firms in a closed
economy with no government.
• Identify the four factors of production
and their respective payments (rent,
wages, interest and profit) and explain
that these constitute the income flow in
the model.
• Outline that the income flow is
numerically equivalent to the
expenditure flow and the value of
output flow.
• Describe, using a diagram, the
circular flow of income in an open
economy with government and
financial markets, referring to
leakages/ withdrawals (savings, taxes
and import expenditure) and injections
(investment, government expenditure
and export revenue).
• Explain how the size of the circular
flow will change depending on the
relative size of injections and leakages.
INDIVIDUAL TASKS: complete
relevant sections of workbook
provided
Game: the circular flow of
income and expenditure
Powerpoint: Introduction to
macroeconomics (objectives)
(155 - 159)
AS/IB1 – The circular flow
https://www.youtube.com/wat
ch?v=b8bgNufhjZs&list=PLW
eicFreBUYDlaLppnRTZpwgBA
Sflf4lU&index=2
https://www.youtube.com/watch
?v=PHe0bXAIuk0#t=83 “How
the economic machine works,
watch the first 12,32 min.
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork,
self assessment, visual,
mind maps
IB LEARNER
PROFILE: Inquirer:
conduct research
and assess
outcomes
Pairwork tasks: why
do you think that this
particular objective
is important for an
economy (positive
implications;
negative implications
if objective is not
achieved).
A DECREASE IN
INJECTIONS WITHIN
THE CIRCULAR
FLOW:
http://www.youtube.co
m/watch?v=TYJSK_j3
0LQ
IB Economics Scheme of Work for Macro
Measures of economic
activity: gross domestic
product (GDP), and gross
national product (GNP) or
gross national income (GNI)
• Distinguish between GDP and
GNP/GNI as measures of economic
activity.
• Distinguish between the nominal
value of GDP and GNP/GNI and the
real value of GDP and GNP/GNI.
• Distinguish between total GDP and
GNP/GNI and per capita GDP and
GNP/GNI.
• Examine the output approach, the
income approach and the expenditure
approach when measuring national
income.
• Evaluate the use of national income
statistics, including their use for
making comparisons over time, their
use for making comparisons between
countries and their use for making
conclusions about standards of living.
• Explain the meaning and significance
of “green GDP”, a measure of GDP
that accounts for environmental
destruction.
KEY WORDS:
GDP, GNP/GNI, economic growth,
nominal, real, per capita, national
income, green GDP
PAIR WORK TASK: analysis of
statistical data (OECD)
Powerpoint: (159 – 166)
• Measuring national
income
Handout and workbooks to
accompanying lessons
OECD statistics:
http://stats.oecd.org/Index.aspx
HOMEWORK:
Investigate GDP and GNI for
their own country.
Powerpoint: (166 – 169)
Statistical analysis:
how can each
objective be
measured – using
OECD data. Each pair
given a different set of
data for a particular
country and asked to
analyse the data.
Find TWO newspaper
articles that could be
considered
MACROECONOMICS
Workpoint 13.2 –
hand in your
material!
OBS!
Save you material so
you can continue
working with it in
next chapters.
Complete activity
sheet.
HL students can also
complete past IB
questions. Consider
‘limitations’ of using
this data as a
measure of ‘living
standard’ and as a
IB Economics Scheme of Work for Macro
The Business Cycle
Short term fluctuations and
long-term trend
• Explain, using a business cycle
diagram, that economies typically tend
to go through a cyclical pattern
characterized by the phases of the
business cycle.
• Explain the long-term growth trend in
the business cycle diagram as the
potential output of the economy.
• Distinguish between a decrease in
GDP and a decrease in GDP growth.
KEY WORDS:
Business cycle, economic growth,
recession, recovery, potential
output, actual output, output gap,
boom, slump
HL LESSON
Measures of economic activity:
gross domestic product (GDP), and
gross national product (GNP) or
gross national income (GNI)
• Calculate nominal GDP from
sets of national income data,
using the expenditure
approach
• Calculate GNP/GNI from data
• Calculate real GDP, using a
price deflator
KEY WORDS:
GDP, GNP/GNI, Price deflator
Practice drawing the business
cycle diagrams.
Analyse various newspaper
articles to analyse stage of
business cycle.
comparative
measure between
countries
LINKS TO TOK:
What is the empirical evidence
for the existence of the business
cycle? How do we decide
whether this evidence is
sufficient?
Can you think of other variables
used by economist that are not
directly observable or
measurable?
Use of economic data to
calculate and analyse GDP,
GNP and real GDP
Complete student workbook
provided in class – use
Assessment advice page 162 as
guidance
Paper 2 + 3
IB Economics Scheme of Work for Macro
Syllabus ref.
Section 2.2
Aggregate demand
and aggregate
supply
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should
be able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Aggregate demand (AD)
The AD curve
• Distinguish between the
LINK TO TOK:
Business confidence is a
contributing factor to the level of
AD. What knowledge issues arise
in attempting to measure
business confidence?
ECC Chapter 14
microeconomic concept of demand for
a product and the macroeconomic
concept of aggregate demand.
• Construct an aggregate demand
curve.
• Explain why the AD curve has a
negative slope.
Studyguide. Practice relevant
diagrams to answer open
questions
AD and AS activity
The components of AD
• Describe consumption, investment,
government spending and net exports
as the components of aggregate
demand.
The determinants of AD or
causes of shifts in the AD
curve
• Explain how the AD curve can be
shifted by changes in consumption due
to factors including changes in
consumer confidence, interest rates,
wealth, personal income taxes (and
hence disposable income) and level of
household indebtedness.
Powerpoint:
Aggregate demand
Mjmfoodie: AD and AS
http://www.youtube.com/watch
?v=hTWPrWmPJS0
AD and AS resources: (mind
maps, simulations,etc)
http://www.bized.co.uk/learn/e
conomics/adas/determination/i
ndex.htm
HOMEWORK:
Complete student workpoints
14.5 and 14.6
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork,
self assessment, visual,
mind maps
IB LEARNER
PROFILE: Thinker:
identify 5 goods /
services people might
need a bank loan to
purchase
AS and AD mind map
All students complete
Workpoints 14.1 and
14.2 in class
IB Economics Scheme of Work for Macro
• Explain how the AD curve can be
shifted by changes in investment due
to actors including interest rates,
business confidence, technology,
business taxes and the level of
corporate indebtedness.
• Explain how the AD curve can be
shifted by changes in government
spending due to factors including
political and economic priorities.
• Explain how the AD curve can be
shifted by changes in net exports due
to factors including the income of
trading partners, exchange rates and
changes in the level of protectionism.
KEY WORDS: aggregate demand,
consumption, investment
(replacement and induced), net
exports, consumer confidence,
interest rate, disposable income,
wealth, household indebtedness,
exchange rate, protectionism
Syllabus ref.
Section 2.2
Aggregate demand
and aggregate
supply
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should
be able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Aggregate supply
The meaning of aggregate
supply
Review AD theory by completing
EXAMINATION QUESTIONS 1
and 2 in pairs as a starter activity
ECC Chapter 15
o Define the term aggregate supply.
• Explain, using a diagram, why the
short-run aggregate supply curve
(SRAS curve) is upward sloping.
In Pairs, students use textbook
to complete activity worksheet
(drawing diagrams, finding
definitions, filling in the
Handouts:
• AS curve (short run)
• AS curve (long run)
PowerPoint: Section 3
Macroeconomics (SRAS and
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork,
self assessment, visual,
mind maps
IB LEARNER
PROFILE: Thinker:
draw Keynesian LRAS
curve and add notes to
diagram to describe
each phase.
IB Economics Scheme of Work for Macro
• Explain, using a diagram, how the AS
curve in the short run (SRAS) can shift
due to factors including changes in
resource prices, changes in business
taxes and subsidies and supply
shocks.
missing words in important
economic theory sentences,
etc)
Add diagrams to Macroeconomics
diagram booklet
Alternative views of aggregate Complete AD and AS activity
(groupwork task) from last week:
supply
• Explain, using a diagram, that the
monetarist/new classical model of the
long run aggregate supply curve
(LRAS) is vertical at the level of
potential output (full employment
output) because aggregate supply in
the long run is independent of the price
level.
• Explain, using a diagram that the
Keynesian model of the aggregate
supply curves has three sections
because of “wage/price” downward
inflexibility and different levels of spare
capacity in the economy.
Shifting the aggregate supply
curve over the long term
o Compare and contrast, using the two
models above, the way the factors
leading to changes in the quantity
and/or quality of factors of production
(including improvements in efficiency,
new technology, reductions in
unemployment, and institutional
changes) can shift the aggregate
supply curve over the long term.
http://www.bized.co.uk/educators/
1619/economics/adas/activity/adas.
htm
supply side shocks / short run
equilibrium)
Mjmfoodie
Episode 25: AD and AS (other
viewpoints and AS diagrams)
http://www.youtube.com/user/
mjmfoodie#p/u/26/0Cn3mr8RP
14
HOMEWORK:
Complete all 10 mark
examination questions on
page 191
Differentiation in class
activities using activity
worksheets
Complete a ‘checklist’
activity sheet for
homework, testing
knowledge of
important definitions
and diagrams. Also
testing use of English
and Economics
language to gain
higher marks in
exams.
All students
complete workpoint
15.1 and 15.2
Paper1, essay
question 1 a and b
page 191)
IB Economics Scheme of Work for Macro
KEY WORDS:
Aggregate supply, SRAS, supply side
shocks, Keynesian LRAS, spare
capacity, full employment level of
output, wage/price downward
inflexibility
Syllabus ref.
Section 2.2
Aggregate demand
and aggregate
supply
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should
be able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Equilibrium
Short-run equilibrium
LINKS TO TOK:
Paradigm shift
•
ECC
Chapter 16 page 192
o Explain, using a diagram, the
determination of short-run equilibrium,
using the SRAS curve.
• Examine, using diagrams, the
impacts of changes in short-run
equilibrium.
Students complete A3 activity
sheet in pairs (after ppt): how is
SR equilibrium restored if AD
shifts?
Handout:
• Macroeconomic
equilibrium
PowerPoint: Students complete
accompanying activity booklet
and use individual whiteboards to
draw diagrams (individually)
PowerPoints:
Section 3 Macroeconomics
(SRAS and supply side shocks
/ short run equilibrium)
LRAS (Keynesian and
Classical theory)
Equilibrium in the monetarist /
new classical model
o Explain, using a diagram, the
determination of long-run equilibrium,
indicating that long-run equilibrium
occurs at the full employment level of
output.
• Examine why, in the monetarist/new
classical approach, while there may be
short-term fluctuations in output, the
economy will always return to the full
employment level of output in the long
run.
‘Learn and Share activity’:
focusing on diagrams and
detailed explanations.
Students complete A3 activity
sheet in pairs (after ppt): how is
SR equilibrium restored if AD
shifts?
PowerPoint: Students complete
accompanying activity booklet
Macroeconomic equilibrium
Government intervention in the
macro-economy
A3 activity sheet for students
to complete in pairs
(Macroeconomic policy and
effect on business activity)
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork,
self assessment, visual,
mind maps
IB LEARNER
PROFILE:
Thinker: using
Keynesian Model
draw AD/LRAS
diagram at a
deflationary gap
All students complete
workpoint 16.1 and
16.2
Complete short
response questions 2
and 3 (page 202)
Students add detail to
diagrams and add
missing words to
sentences describing
the process involved.
Key terms handout
provided. Short
questions quiz
IB Economics Scheme of Work for Macro
o Examine, using diagrams, the
impacts of changes in the long-run
equilibrium.
Equilibrium in the Keynesian
model
• Explain, using the Keynesian AD/AS
diagram, that the economy may be in
equilibrium at any level of real output
where AD intersects AS.
• Explain, using a diagram, that if the
economy is in equilibrium at a level of
real output below the full employment
level of output, then there is a
deflationary (recessionary) gap.
• Discuss why, in contrast to the
monetarist/new classical model, the
economy can remain stuck in a
deflationary (recessionary) gap in the
Keynesian model.
• Explain, using a diagram, that if AD
increases in the vertical section of the
AS curve, then there is an inflationary
gap.
• Discuss why, in contrast to the
monetarist/new classical model,
increases in aggregate demand in the
Keynesian AD/AS model need not
be inflationary, unless the economy is
operating close to, or at, the level of
full employment.
KEY WORDS:
Short run macro equilibrium, long run
macro equilibrium, full employment
and use individual whiteboards to
draw diagrams (individually)
Watch mjmfoodie:
Episode 26 Fiscal Policy
http://www.youtube.com/user/mjm
foodie#p/u/23/1qhJPqyJRo8
Episode 32 Monetary Policy
http://www.youtube.com/user/mjm
foodie#p/u/16/HdZnOQp4SmU
HL students complete numerical
examples in workbook – analyse
values
Draw diagrams to represent the
effect
http://search.japantimes.co.jp/c
gi-bin/ed20021028a1.html
ECC Chapter 16 pages 199202
Student workpoint 16.3 and
further numerical examples in
student booklet
Powerpoint: HL extension ‘the
multiplier’
HOMEWORK:
Complete Data Response
exercise (past paper practice).
Add further diagrams to
MACRO booklet.
provided to help test
understanding.
AD/AS (short run)
exam questions sheet
“The Spanish
Economy”
IB Economics Scheme of Work for Macro
level of output, deflationary
(recessionary) gap, inflationary gap
HL LESSON
The Keynesian multiplier
The nature of the Keynesian
multiplier
• Explain, with reference to the
concepts of leakages (withdrawals)
and injections, the nature and
importance of the Keynesian multiplier.
• Calculate the multiplier using either of
the following formulae.
1
(1-MPC)
or
1
(MPS + MPT + MPM)
• Use the multiplier to calculate the
effect on GDP of a change in an
injection in investment, government
spending or exports.
• Draw a Keynesian AD/AS diagram to
show the impact of the multiplier.
KEY WORDS:
Keynesian multiplier, accelerator,
‘crowding-out’, injections
IB Economics Scheme of Work for Macro
Syllabus ref.
Section 2.3
Macroeconomic
objectives
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should be
able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Low unemployment
The meaning of unemployment
• Define the term unemployment.
LINKS WITH TOK:
Do we as a society have a
moral obligation to ensure
that all those who are
ready, willing and able to
work are actively
employed? Should all
benefits be slashed for
those individuals who
refuse to play their role in
society?
ECC Chapter 17 page 203
• Explain how the unemployment rate is
calculated.
• Explain the difficulties in measuring
unemployment, including the existence of
hidden unemployment, the existence of
underemployment, and the fact that it is an
average and therefore ignores regional,
ethnic, age and gender disparities.
Consequences of unemployment
Consequences of unemployment
• Discuss possible economic consequences
of unemployment, including a loss of GDP,
loss of tax revenue, increased cost of
unemployment benefits, loss of income for
individuals, and greater disparities in the
distribution of income.
• Discuss possible personal and social
consequences of unemployment, including
increased crime rates, increased stress
levels, increased indebtedness,
homelessness and family breakdown.
Types and causes of
unemployment
Work through PowerPoint
presentation and students
complete tasks
Analyse unemployment data
in PowerPoint student
booklet
Watch part of “The Full
Monty” and in pairs,
complete the task (what are
the costs of unemployment)
‘Learn and Share’ activity:
each pair focuses on a
particular type of
unemployment and then
pairs split up and teach topic
to other students in group.
PowerPoint:
Section 3.5 Unemployment
Handout:
• Unemployment
• The labour market
and causes of
unemployment
(made into a A3
handout with
spaces for students
to add information
during lesson and
draw diagrams)
Mjmfoodie:
Episode 18 Unemployment
http://www.youtube.com/us
er/mjmfoodie#p/search/20/
_CdTu1pk06w
Episode 19 Types of
Unemployment
http://www.youtube.com/us
er/mjmfoodie#p/search/5/Z
ckAN1KYB5I
HOMEWORK: Data
Response Exercise page
219
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork, self
assessment, visual, mind
maps
IB LEARNER
PROFILE:
Principled: does
economic growth lead
to economic
development at all
times?
All students produce a
mind map (definitions,
causes, costs of;
measures to deal with
unemployment) to aid
revision
All students complete
workpoint 17.4 and
17.6 (another revision
aid)
Begin data Response
exercise page 219 in
class. Produce mind
map without specific
guidance
IB Economics Scheme of Work for Macro
• Describe, using examples, the meaning of
frictional, structural, seasonal and cyclical
(demand-deficient) unemployment.
• Distinguish between the causes of
frictional, structural, seasonal and cyclical
(demand-deficient) unemployment.
• Explain, using a diagram that cyclical
unemployment is caused by a fall in
aggregate demand.
• Explain, using a diagram, that structural
unemployment is caused by changes in the
demand for particular labour skills, changes
in the geographical location of industries,
and labour market rigidities.
• Evaluate government policies to deal with
the different types of unemployment.
KEY WORDS:
Unemployment, unemployment rate,
underemployment, hidden unemployment,
social consequences, frictional, structural,
seasonal and cyclical (demand-deficient)
HL LESSON
Low unemployment
The meaning of unemployment
• Calculate the unemployment rate
from a set of data
Low and stable rate of inflation
The meaning of inflation, disinflation
and deflation
• Construct a weighted price index,
using a set of data provided
• Calculate the inflation rate from a
set of data
HL Handout (Phillips curve)
Watch “Are you really
unemployed?”
http://www.youtube.com/watc
h?v=Ulu3SCAmeBA –
discuss how statistics can be
adjusted by governments as
a class activity
Using statistical data from
students’ own countries,
calculate unemployment and
inflation rate.
Analyse data provided.
IB Economics Scheme of Work for Macro
KEY WORDS:
Unemployment rate, inflation rate, weighted
price index, CPI, RPI
Syllabus ref.
Section 2.3
Macroeconomic
objectives
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should be
able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
Low and stable rate of inflation
The meaning of inflation,
disinflation and deflation
LINKS WITH TOK:
Page 228 Who decides
what is included in an
‘average’ basket of goods
and services. The role of
political bias and statistical
bias. Does the average
basket used to calculate
CPI truly reflect the
spending patterns of
different groups of people?
ECC Chapter 18
• Distinguish between inflation, disinflation
and deflation.
• Explain that inflation and deflation are
typically measured by calculating a
consumer price index (CPI), which
measures the change in prices of a basket
of goods and services consumed by the
average household.
• Explain that different income earners may
experience a different rate of inflation when
their pattern of consumption is not
accurately reflected by the CPI.
• Explain that inflation figures may not
accurately reflect changes in consumption
patterns and the quality of the products
purchased.
• Explain that economists measure a
core/underlying rate of inflation to eliminate
the effect of sudden swings in the prices of
food and oil, for example.
• Explain that a producer price index
measuring changes in the prices of factors
of production may be useful in predicting
future inflation.
Watch various youtube links
describing economic
situation in Zimbawe
http://www.youtube.com/watc
h?v=yboc9Xfqm-I
http://www.youtube.com/watc
h?v=_nhhBvkBz0k&feature=r
elated
Inside a failed state
(Zimbabwe)
http://www.youtube.com/watch?
v=MPKGZreusoQ&feature=chan
nel
http://www.youtube.com/wa
tch?v=zI4z_McqCsI
(understanding economics:
inflation)
http://www.youtube.com/wa
tch?v=C4wHVkuuy78&feat
ure=related (deflation
explained)
mjm foodie
Episode 16: inflation and
price level
http://www.youtube.com/us
er/mjmfoodie#p/search/15/
SmOMp8gycMA
Handout:
Inflation with accompanying
student WORKBOOK
PowerPoint:
Section 3.5 Inflation
Wortksheet:
A3 pair work sheet (Causes
of inflation)
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork, self
assessment, visual, mind
maps
IB LEARNER
PROFILE:
Thinker: use 2 AD/AS
diagrams to show
good/bad deflation
Inquirer: look up all
goods in your country’s
CPI basket – compare
and contrast with
another country
(Sweden)
HL Inquirer:
Describe the trade-off
between inflation and
unemployment
All students complete
workpoint 18.1 and
18.2 (p223 and 224)
during class time.
In Pairs, work through
18.3 page 225 to
IB Economics Scheme of Work for Macro
Consequences of inflation
• Discuss the possible consequences of a
high inflation rate, including greater
uncertainty, redistributive effects, less
saving, and the damage to export
competitiveness.
Discuss in pairs how hyperinflation may have occurred
in Zimbabwe and the costs to
the economy. What is the
solution?
Consequences of deflation
ECC Chapter 18 pages 236241
Consequences of deflation
• Discuss the possible consequences of
deflation, including high levels of cyclical
unemployment and bankruptcies.
Use student workbook to
calculate and analyse
various numerical examples
Types and causes of inflation
Types and causes of inflation
• Explain, using a diagram, that demandpull inflation is caused by changes in the
determinants of AD, resulting in an increase
in AD.
• Explain, using a diagram, that cost-push
inflation is caused by an increase in the
costs of factors of production, resulting in a
decrease in SRAS.
• Evaluate government policies to deal with
the different types of inflation.
KEY WORDS:
Inflation, disinflation, deflation, CPI, RPI,
export competitiveness, redistributive
effects, bankruptcy, demand-pull inflation,
cost-push inflation
Complete student workpoint
18.9 in class (page 238)
Draw Phillips curve diagrams
and discuss exactly what this
represents. Evaluate the
Phillips curve and the
inflation/unemployment
trade-off
Homework task –
complete workpoint 18.5
page 231 and 18.8 page
235
highlight problems of
deflation in Japan –
differentiation with pairs
assigned
Self assessment:
complete topic revision
checklist sheet and add
to list of definitions
Produce a mind map
(definitions, causes,
costs of inflation and
deflation) to aid
revision. Extension
topics: evaluate why
DEFLATION may be a
greater challenge to an
economy than inflation
IB Economics Scheme of Work for Macro
HL LESSON
Low and stable rate of inflation
Paper 3
Possible relationships between
unemployment and inflation
• Discuss, using a short-run Phillips curve
diagram, the view that there is a possible
trade-off between the unemployment rate
and the inflation rate in the short run.
• Explain, using a diagram, that the shortrun Phillips curve may shift outwards,
resulting in stagflation (caused by a
decrease in SRAS due to factors including
supply shocks).
• Discuss, using a diagram, the view that
there is a longrun Phillips curve that is
vertical at the natural rate of unemployment
and therefore there is no trade-off between
the unemployment rate and the inflation
rate in the long run.
• Explain that the natural rate of
unemployment is the rate of unemployment
that exists when the economy is producing
at the full employment level of output.
KEY WORDS:
Short run Phillips curve, trade-off, natural
rate of unemployment, full employment
output level
Syllabus ref.
TOPIC OUTLINE
SYLLABUS/SUBJECT:
Aims and Objectives
At the end of the week, students should be
able to know and understand:
TEACHING ACTIVITIES:
How topic is delivered in the
classroom?
RESOURCES:
Websites, text books refs,
worksheets, ppt & homework
PERSONALISED
LEARNING
DIFFERENT LEARNING
NEEDS:
Worksheets, Groupwork, self
assessment, visual, mind
maps
IB Economics Scheme of Work for Macro
Section 2.3
Macroeconomic
objectives
Economic growth
The meaning of economic growth
• Define economic growth as an increase in
real GDP.
Causes of economic growth
Causes of economic growth
• Describe, using a production possibilities
LINKS TO TOK
Is economic growth always
beneficial? What could be
meant by the word
beneficial? The notion of
fairness can be approached
from different perspectives.
Recap and review PPF
theory from week 2 of the
course:
curve (PPC) diagram, economic growth as
an increase in actual output caused by
factors including a reduction in
unemployment and increases in productive
efficiency, leading to a movement of a point
inside the PPC to a point closer to the PPC.
• Describe, using a PPC diagram, economic
growth as an increase in production
possibilities caused by factors including
increases in the quantity and quality of
resources, leading to outward PPC shifts.
• Describe, using an LRAS diagram,
economic growth as an increase in potential
output caused by factors including
increases in the quantity and quality of
resources, leading to a rightward shift of the
LRAS curve.
• Explain the importance of investment for
economic growth, referring to investment in
physical capital, human capital and natural
capital.
• Explain the importance of improved
productivity for economic growth.
PowerPoint: PPCs with
accompanying student
activity booklet
Revision tasks: In pairs, draw
diagrams and define key
words
Consequences of economic
growth
Watching dvd (Cotton
industry in India) and
stopping at various points to
discuss issues addressed
o Discuss the possible consequences of
economic growth, including the possible
ECC
Chapter 1 pp 2-7
Handout: Production
Possibility Curve
Chain gang game: come up
to board one at a time and
add detail to relevant
diagrams. Peer assessment.
Draw various diagrams in
student workbook
IB LEARNER
PROFILE:
Powerpoints Common
Caring: does
characteristics and diversity
economic growth
• Sources of
lead to economic
economic growth
and consequences development at all
STUDENT WORKBOOKS
times?
to accompanying each ppt
Caring about the
world’s future
DVD:
ECC Chapter 19 page 244
•
Slumdog children
of Mumbai
Cotton – white gold
Pairwork activities
throughout: linking
high and lower
http://www.teachernet.gov.
attainment students
uk/management/resourcesfi
•
nanceandbuilding/Sustaina
bility/sustainabledevelopme
nt/
HOMEWORK:
Investigate HDI values and
prepare a short
presentation on other
methods used to measure
development
Higher level
questioning (especially
with key words –
productivity, capital
widening and
deepening, uneconomic
growth)
HOMEWORK:
Read Chapter 19
IB Economics Scheme of Work for Macro
impacts on living standards, unemployment,
inflation, the distribution of income, the
current account of the balance of payments,
and sustainability.
KEY WORDS:
Economic growth, economic development,
PPC, economic decline, negative
externalities, LRAS curve, investment in
physical capital / human capital / natural
capital, productivity, living standards,
distribution of income, current account of
the balance of payments, sustainability
HL LESSON
The meaning of economic growth
•
Calculate the rate of economic
growth from a set of data
ECC page 249
Calculate growth rates and
comment on (analyse)
growth rates – IWB and
student workbook