Fiscal Policy Introduction

Overview

• Level: AS, A-Level, IB
• Board: AQA, Edexcel, OCR, IB, Eduqas, WJEC
• Last Updated: 31 March 2020

Key Topics Covered

• Main types of macroeconomic policy
• Key features of UK fiscal policy
• Impact of fiscal policy using AD/AS analysis

Activities

Activity 1: Video

• Covers the three main categories of macroeconomic policy:
  • Fiscal
  • Monetary
  • Supply-side
• Reminds students of main government macroeconomic objectives.

Activity 2: Policy Match-Up Game

• Interactive game to test understanding of Activity 1.
• Different policy options presented each time.

Activity 3: Video

• Discusses key terms related to fiscal policy.
• Examines differences between direct and indirect taxes in the UK.

Activity 4: Video

• Explains main types of government spending:
  • Transfers (e.g., welfare payments)
  • Current spending
  • Capital spending
• Provides examples for each type.

Activity 5: Government Spending Match-Up Game

• Interactive game focusing on UK government spending categories.

Activity 6: Video

• Delves into UK fiscal policy facts and recent patterns.

Activity 7: Enrichment Task

• Research UK government fiscal policy over time.
• Create a timeline using various formats (e.g., PowerPoint, video).

Activity 8: UK Tax Revenue Match-Up Game

• Interactive game focusing on UK tax revenues.

Activity 9: Video

• Summarizes learning, linking it to AD/AS analysis.
• Ends with an exam-style written task.

Activity 10: Be the Chancellor - Fiscal Budget Time

• Students simulate being the Chancellor of an economy.
• Make decisions on government spending and tax policies.
• Write a speech outlining budget choices.

Extension Reading

• Article from the Institute for Fiscal Studies on the UK's fiscal response to COVID-19.

Additional Teacher Guidance

• Includes 30 minutes of guided video content.
• 20 minutes of thinking time and student activity.
• 3 interactive games for enhanced learning.
• Exam-style written task for assessment.
• Suggested enrichment research task on historical UK fiscal policy.
• Enrichment task simulating Chancellor of the Exchequer role.
• Additional extension reading is recommended.

Time Allocation

• Main activities: 90 minutes
• Enrichment tasks and extension reading: 60 minutes