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Vlog

Last updated

28 March 2026

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This resource provides a complete, ready-to-teach 80-minute lesson on GDP, GNI, and the architecture of national income measurement for IB Diploma Economics (2022 syllabus), suitable for mixed SL and HL classes.

The lesson opens with a hook presenting three identical numbers — total spending, total output, and total income — each measuring the same economy from a different angle. Students grapple with why three different approaches produce the same answer before any formal instruction is given. The five-sector circular flow is then extended from its Unit 1 introductory form into a fully labelled model with leakages and injections, and students use it to explain the equivalence of the income, output, and expenditure approaches.

Two matched documents are included. The student resource follows a four-phase structure: a hook activity, two phases of collaborative exploration with precision checklists, a structured whole-class synthesis, and a silent individual application with two differentiated options. The teacher guide includes a full CBCI framework with Transfer Goal, complete model responses for every task and discussion question, common errors with named mechanisms and corrections, probing questions formatted for classroom circulation, an ATL skills table, and a bridge to the next lesson.

Key content covered in this lesson:

  • Draw and annotate the five-sector circular flow model with leakages and injections.
  • Explain the equivalence of the income, output, and expenditure approaches to measuring national income.
  • Calculate nominal GDP using C + I + G + X − M and calculate nominal GNI from data.

Diagrams covered: five-sector circular flow with leakages and injections.

The transfer task requires students to evaluate the relationship between GDP and GNI as a window onto the ownership structure of an economy — recognising that a large gap between the two signals significant foreign ownership of domestic factors of production.

All resources use strict IB Economics terminology throughout. The word “diagram” is used exclusively in line with IB examination conventions. Content is written in British English. HL material is integrated into the lesson rather than segregated.

Syllabus reference: Unit 3.1 — Measuring economic activity and illustrating its variations (first half), IB Economics Guide 2022. Key concepts: change, economic well-being, interdependence.

Suitable for: IB Diploma Economics, DP1 and DP2. Adaptable for Google Classroom, Canvas, and Managebac.

Get this resource as part of a bundle and save up to 22%

A bundle is a package of resources grouped together to teach a particular topic, or a series of lessons, in one place.

Bundle

IB Economics Unit 3 Macroeconomics COMPLETE BUNDLE | 16 Lesson Pairs | CBCI

This bundle provides the complete Unit 3 Macroeconomics teaching sequence for IB Diploma Economics (2022 syllabus). Sixteen lesson pairs (32 documents) cover the entire unit from introductory macroeconomics through to the complete policy synthesis — leaving no syllabus gaps. Every lesson includes a matched student resource and teacher guide. The student resources follow a consistent 80-minute four-phase structure: a real-world hook, two phases of collaborative pair and small-group exploration, a structured whole-class synthesis, and a silent individual application with two differentiated options. The teacher guides include a full CBCI framework with Transfer Goal and three-level understanding table, complete model responses for every task and discussion question, common errors with named mechanisms and corrections, probing questions formatted for classroom circulation, an ATL skills table, and a bridge to the next lesson. Lessons included: - 3.0 — How the Economic Machine Works (Ray Dalio anchor, circular flow, interdependence) - 3.1a — GDP, GNI & National Income Measurement (three approaches, expenditure formula) - 3.1b — Real GDP, PPP, the Business Cycle & Limits of GDP (alternative well-being measures) - 3.2a — Aggregate Demand (components, determinants, shifts, output gaps; 2008 crisis anchor) - 3.2b — Aggregate Supply & Keynesian vs Monetarist Debate (SRAS, LRAS, Keynesian AS, both equilibria; Great Depression anchor) - 3.3a — Economic Growth & Unemployment (actual/potential, PPC, unemployment types, NRU, costs) - 3.3b — Inflation, Deflation & the CPI (demand-pull, cost-push, HL weighted index; Zimbabwe and Japan) - 3.3c — Policy Conflicts & the Phillips Curve (four conflicts, HL government debt, SRPC, LRPC, NAIRU) - 3.4a — Measuring Inequality & Poverty (Lorenz curve, Gini coefficient, MPI, HL quintile data) - 3.4b — Causes, Impacts & Policies (eight causes, taxation types, UBI, HL tax calculations) - 3.5a — Monetary Policy Mechanics (transmission mechanism, real interest rates, HL money creation and tools) - 3.5b — Monetary Policy Effectiveness (ZLB, confidence, time lags; Japan case study) - 3.6a — Fiscal Policy Mechanics (Keynesian vs monetarist diagrams, HL multiplier; UK austerity) - 3.6b — Fiscal Policy Effectiveness (automatic stabilisers, HL crowding out; Japan fiscal deficits) - 3.7a — Supply-Side Policies: The Policy Menu (market-based and interventionist; Chile vs South Korea) - 3.7b — Supply-Side Effectiveness & Policy Synthesis (complete monetary-fiscal-supply-side framework; UK vs Germany productivity) HL content is integrated into lessons rather than segregated. Resources use strict IB terminology throughout and are written in British English. The word "diagram" is used exclusively — in line with IB examination conventions. The CBCI framework in every teacher guide moves students from factual knowledge (definitions, diagrams, formulae) through conceptual understanding (transferable generalisations about how economies function) to transfer tasks (applying understanding to unfamiliar real-world contexts). This mirrors the assessment structure of IB Papers 1, 2, and 3. Real-world anchors used across the bundle include: Ray Dalio's economic machine, the 2008 global financial crisis, the Great Depression, Zimbabwe's hyperinflation, Japan's deflationary decades and fiscal stimulus, the Bank of England's rate decisions, UK austerity, Chile's liberalisation, South Korea's industrial policy, and the UK–Germany productivity divergence. Suitable for: IB Diploma Economics, DP1 and DP2, Standard Level and Higher Level. Designed for 80-minute lessons with collaborative pair and small-group activities, adaptable for Google Classroom, Canvas, and Managebac environments. Syllabus reference: IB Diploma Programme Economics Guide, first assessment 2022. Unit 3: Macroeconomics, 3.0–3.7.

£49.99

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