SHS3 Economics · Semester 2 Week 8: Macroeconomic Variables (GDP, Inflation, Unemployment, Exchange Rate)

Lesson notes

Learning Objectives

Indicator: 3.4.1.LI.2 - Calculate the multiplier.

By the end of the lesson, learners can:

Define the multiplier and explain what it measures in the context of the circular flow of income.
State the formula for the simple multiplier in a closed economy with no government sector.
Calculate the value of the multiplier when given the marginal propensity to consume (MPC) or the marginal propensity to save (MPS).
Apply the multiplier to calculate the total change in national income resulting from a given injection, such as an increase in investment.
Solve word problems that combine MPC, MPS, and the multiplier, showing all workings clearly.

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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.2 - Calculate the multiplier.
Suggested placement: Semester 2, Week 8 (Week 28 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): Brainstorm on how to calculate the multiplier. Give equal opportunity to all learners. Pay attention to girls and boys who do not like mathematics, encourage them to attend the intervention mathematics class.
Assessment (3.4.1.AS.2). The document marks these depth-of-knowledge levels for this indicator: Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Markers
- Board pens
- Exercise books
- Textbooks
- Calculators