Vlog

Please consent to cookies to view content.

' ); iframeDoc.close(); } } } } } const observer = new MutationObserver(switchSrc); observer.observe(document.documentElement, { childList: true, subtree: true, }); })();

Vlog

Last updated

28 March 2026

pdf, 184.99 KB
pdf, 184.99 KB
pdf, 199.61 KB
pdf, 199.61 KB

This resource provides a complete, ready-to-teach 80-minute lesson on real GDP, purchasing power parity, the business cycle, and the limitations of national income statistics for IB Diploma Economics (2022 syllabus), suitable for mixed SL and HL classes.

The lesson opens with a hook in which a fictional country’s nominal GDP grows 40% over four years while the price level rises 50% — revealing that real GDP has actually fallen. Students discover that the headline number can deceive before any formal instruction is given. The lesson then builds three successive corrections to nominal GDP: adjusting for inflation, for population, and for international purchasing power — before critically evaluating whether even the corrected figure captures economic well-being.

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:

  • Distinguish real GDP from nominal GDP, calculate real GDP using a price deflator, and calculate real GDP per capita.
  • Explain purchasing power parity and draw and annotate the business cycle diagram.
  • Evaluate the limitations of GDP/GNI as measures of well-being; describe three alternative measures (OECD Better Life Index, Happiness Index, Happy Planet Index).

Diagrams covered: business cycle diagram with long-term growth trend (potential output).

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 (second half), IB Economics Guide 2022. Key concepts: change, economic well-being, sustainability.

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

Reviews

Something went wrong, please try again later.

This resource hasn't been reviewed yet

To ensure quality for our reviews, only customers who have purchased this resource can review it

to let us know if it violates our terms and conditions.
Our customer service team will review your report and will be in touch.