Nearpod version available
Grade 9-12
,
Lesson
Spending Multipliers
Objective
Students will be able to:
- Define spending multiplier, marginal propensity to consume, marginal propensity to save.
- Compute the spending multiplier.
Standard
National Standards in Economics
Economic Fluctuations
Standard: 18
- Students will understand that: Fluctuations in a nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy. Recessions occur when overall levels of income and employment decline.
- Students will be able to use this knowledge to: Interpret media reports about current economic conditions and explain how these conditions can influence decisions made by consumers, producers, and government policy makers.
In this personal finance lesson, students will learn spending multiplier and the marginal propensity of consuming and saving.
Resources
Procedure
Click NEARPOD VERSION: SPENDING MULTIPLIERS to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!
Subjects:
Economics