The Effects of Fiscal Policy Activity

Grade Levels
9th - 12th
Formats Included
  • PDF (8 pages)
  • Compatible with 
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Do you need a fantastic activity that provides your students with plenty of graphing practice with the effects of fiscal policy and the multiplier effect? This activity is the perfect tool you need to guide your students toward a deeper comprehension of the effects fiscal policy has on economic conditions!

This activity includes:

1) This "The Effects of Fiscal Policy" Activity provides your students with 3 different sections where they can practice the principles taught in your classroom! First, your students will be asked to identify the type and size of GDP gap that exists in an aggregate economy, and then list the appropriate fiscal policy needed to return the economy to equilibrium. Then, students will be asked to explain how the fiscal policy identified will set off the multiplier effect, and how that effect will eventually close the GDP gap. Your students will then be asked to do the same for a different type of GDP gap. Lastly, students are asked to use their knowledge to analyze 5 different aggregate economies provided and identify the type of gap that exists. Students will determine the fiscal policy needed to close the GDP gap, graph the change, and then investigate how certain economic indicators will be effected, including price level, Real GDP, the unemployment rate, standard of living, income and consumption levels, and net exports.

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.

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 3.2 - The Effects of Fiscal Policy" video lecture, which can be found here:

Unit 3.2 - The Effects of Fiscal Policy

For more of our video lectures, check out our "You/Will/Love Economics" YouTube channel and subscribe for upcoming videos:

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Flip your classroom and the way your students learn economics TODAY!
Total Pages
8 pages
Answer Key
Teaching Duration
1 hour
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