Unit 6: Lesson 35 - Fiscal Policy: A Two-Act Play

Groups of students are given outlines for one of two acts in a play describing either expansionary or contractionary fiscal policy. After choosing parts and preparing lines for their roles, two groups are chosen to perform the play. Events in the play are discussed by reference to concepts of fiscal policy. More advanced classes may then discuss current debates about the effectiveness of fiscal policy.

Concepts:

• Contractionary Fiscal Policy
• Crowding-Out
• Expansionary Fiscal Policy
• Fiscal Policy
• Multiplier Effect
• Supply
• Supply-Side Fiscal Policy

• Standard #20: Fiscal and Monetary Policy