SHS3 Economics · Semester 2 Week 7: Macroeconomic Variables (GDP, Inflation, Unemployment, Exchange Rate)

Lesson notes

Learning Objectives

Indicator: 3.4.1.LI.1 - Describe aggregate expenditure.

By the end of the lesson, learners can:

Define aggregate expenditure (AE) in their own words as the total spending in an economy over a given period.
Identify and describe the four components of aggregate expenditure: consumption (C), investment (I), government spending (G), and net exports (X - M).
Write and explain the aggregate expenditure equation: AE = C + I + G + (X - M).
Distinguish between aggregate expenditure and aggregate demand, noting how AE connects to the macroeconomic variables studied in Weeks 4 and 5 (GDP, inflation, unemployment, exchange rate).
Work in mixed-ability groups to construct a simple numerical example of aggregate expenditure and present their findings to the class.

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Curriculum details

Strand: Government Economic Policy and Trade (Strand 4)
Sub-strand: Macroeconomic Variables (GDP, Inflation, Unemployment, Exchange Rate) (4.1)
Content standard: 3.4.1.CS.2 - Demonstrate knowledge and understanding in Aggregate Expenditure and the Multiplier. 3.4.1.LO.1 Distinguish the linkages and connections between the fundamental macroeconomic variables. 3.4.1.LO.2 Employ relevant approaches to analyse aggregate expenditure and multiplier.
Indicator: 3.4.1.LI.1 - Describe aggregate expenditure.
Suggested placement: Semester 2, Week 7 (Week 27 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Curriculum reference: NaCCA curriculum document, p. 114

Exemplars (from the NaCCA curriculum)

Talk for Learning Approaches (TfL): Discuss the components of aggregate expenditure. Give equal opportunity to all learners. Pay attention to learners approaching proficiency.
Assessment (3.4.1.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 2 Skills of conceptual understanding.
Teaching and Learning Resources:
- Markers
- Board pens
- Exercise books
- Textbooks
- Calculators