This activity is the perfect tool you need to guide your students toward a deeper comprehension of the theories of Adam Smith and John Maynard Keynes and how they differ!
This activity includes:
1) This "Classical vs. Keynesian Theories" Activity includes 4 parts. It begins with a colorful graphic organizer that asks your students to define Smith's theory of "flexible" wages and prices and to explain how Smith believes the market itself corrects the issues of recession and inflation. Next, students define Keynes's theory of "sticky" wages and prices and explain how Keynes believes the government must intervene to correct economic contraction. Students will then use a labeled aggregate supply curve to identify the three ranges of the Keynesian aggregate supply curve, and identify when certain conditions exist in the economy. Finally, students will use a series of Keynesian model graphs provided to determine how changes in the aggregate economy will affect prices and Real GDP output, and then elaborate on what classical and Keynesian economists predict will happen next.
This activity can be used in many different ways in the classroom. Students can work independently, in pairs or this activity can be used as a jigsaw in order to facilitate a class wide discussion about the topics discussed in the activity.
2) A detailed answer key to the lesson activity to save you time and help guide student comprehension.
This activity can also be found in a bundle paired with a PowerPoint, Keynote and PDF version of a fully customizable lecture found here:
If you like this activity, check out our Unit Activity Bundle that includes activities for all of the objectives in this unit.
Aggregate Supply and Demand Unit Activity Bundle
Best of all, this activity aligns to our "Unit 2.6 - Classical vs. Keynesian Theories" video lecture, which can be found here:
Unit 2.6 - Classical v. Keynesian Theories
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