Build your students' comprehension of the complexities of fiscal policy use with this engaging and multi-faceted activity!
This activity includes:
1) This "Problems with Fiscal Policy" Activity includes 4 parts. It begins with a colorful graphic organizer that asks your students to define the various types of time lags associated with fiscal policy implementation, and to classify four scenarios provided as examples of recognition, administrative, or operational lag. Next, students will answer a short-answer free response question (FRQ) on the incorrect use of fiscal policy due to political motivation. Next, students will be asked to analyze the phenomena known as "crowding out" and "crowding in", defining their relationship to budget deficit and surplus, graphing them, and explaining how they reduce the effectiveness of fiscal policy. Finally, students will use their knowledge to analyze the "net export effect" by explaining how the use of fiscal policy inadvertently makes exported and imported goods and services more or less expensive and therefore changes a country's net export balance. Student will then graph the effect and explain how it reduces the effectiveness of fiscal policy.
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:
Problems with Fiscal Policy Bundle
If you like this activity, check out our Unit Activity Bundle that includes activities for all of the objectives in this unit.
Fiscal Policy Unit Activity Bundle
Best of all, this activity aligns to our "Unit 3.5 - Problems with Fiscal Policy" video lecture, which can be found here:
Unit 3.5 - Problems with Fiscal Policy
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