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ÌÇÐÄVlog

Last updated

28 March 2026

pdf, 222.66 KB
pdf, 222.66 KB
pdf, 186.82 KB
pdf, 186.82 KB

This resource provides a complete, ready-to-teach 80-minute lesson on monetary policy mechanics for IB Diploma Economics (2022 syllabus), suitable for mixed SL and HL classes.

The lesson opens with two Bank of England headlines — one from 2022 (raising rates to 5.25% to fight inflation) and one from 2009 (cutting to 0.5% and launching quantitative easing during recession). Students consider how the same institution using the same tool can address opposite problems before any formal instruction is given.

Two matched documents are included. The student resource follows a four-phase structure with collaborative pair and small-group tasks throughout. 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:

  • Define monetary policy; explain the central bank’s role and the five goals of monetary policy including inflation targeting.
  • Explain the transmission mechanism from interest rate changes to AD and macroeconomic outcomes; calculate real interest rates using the Fisher equation.
  • Draw fully labelled AD/AS diagrams for expansionary and contractionary monetary policy. HL: explain money creation by commercial banks, the credit multiplier, the four tools of monetary policy, and the money market diagram.

Diagrams covered: expansionary and contractionary monetary policy (AD/AS); HL: money market diagram (demand and supply of money, equilibrium interest rate).

All resources use strict IB Economics terminology throughout. Content is written in British English. HL material is integrated into the lesson in yellow-bordered extension boxes.

Syllabus reference: Unit 3.5 — Demand management: monetary policy (mechanics), IB Economics Guide 2022. Key concepts: intervention, 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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