Lesson Plan for Senior Secondary 2 - Economics - Demand For And Supply Of Money

**Lesson Plan: Economics** **Grade Level:** Senior Secondary 2 **Topic:** Demand for and Supply of Money **Duration:** 70 minutes **Objectives:** 1. **Knowledge Objective:** Students will define and understand the concepts of demand for and supply of money. 2. **Comprehensive Objective:** Students will analyze the factors affecting the demand for and supply of money. 3. **Application Objective:** Students will demonstrate the ability to graph and interpret the demand and supply of money using real-world scenarios. **Materials Needed:** - Whiteboard and markers - Projector and computer with presentation slides - Graph paper and rulers for each student - Handouts on key concepts and examples - Economics textbooks --- **Lesson Procedure:** **Introduction (10 minutes):** 1. **Greeting and Attendance (2 minutes):** Greet the students and take attendance. 2. **Hook (3 minutes):** Present a real-life scenario about how changes in interest rates affect people's desire to hold money versus invest it. 3. **Lesson Objectives (2 minutes):** Explain the objectives of the lesson to the students. 4. **Review (3 minutes):** Briefly review the prerequisite knowledge of money functions and types. **Direct Instruction (15 minutes):** 1. **Definition and Importance (5 minutes):** - Define "demand for money" and explain it as the desire to hold cash or easily accessible accounts. - Define "supply of money" and explain it as the total amount of monetary assets available in an economy. 2. **Factors Influencing Demand for Money (5 minutes):** - Transaction Motive: Need for cash to carry out daily transactions. - Precautionary Motive: Holding money for unforeseen expenses. - Speculative Motive: Holding cash to take advantage of future investment opportunities. - Explain interest rates' role in influencing demand. 3. **Factors Influencing Supply of Money (5 minutes):** - Role of Central Banks: Monetary policy and reserve requirements. - Banking Systems: Deposit creation and lending processes. - Government Policies: Fiscal policies and treasury operations. **Guided Practice (15 minutes):** 1. **Graphing Supply and Demand Curves (7 minutes):** - Demonstrate how to plot demand and supply curves for money on the whiteboard, highlighting equilibrium points. - Show how shifts in the curves occur due to external factors. 2. **Interactive Exercise (8 minutes):** - Provide students with graph paper and a set of data. - Have them plot their own demand and supply curves based on various scenarios (e.g., change in interest rates, central bank interventions). **Independent Practice (15 minutes):** - Distribute a worksheet with different scenarios that affect the demand and supply of money. - Ask students to identify whether the scenario shifts the demand or supply curve and in which direction. - They will then graph these shifts and determine the new equilibrium. **Assessment (10 minutes):** 1. **Question and Answer Session (5 minutes):** - Pose questions to gauge understanding and encourage students to think critically about the topic. 2. **Exit Ticket (5 minutes):** - Each student writes down one thing they learned, one question they still have, and one application of the lesson to real-life situations. **Conclusion (5 minutes):** 1. **Recap (3 minutes):** Summarize the key points covered in the lesson. 2. **Preview Next Lesson (2 minutes):** Provide a brief overview of the next topic to be discussed (e.g., Monetary Policy and Its Effects on the Economy). --- **Homework:** Assign students a short essay on how recent monetary policy changes in their country have affected the demand for and supply of money, including a graph illustrating the impact. --- **Reflection:** - Reflect on the effectiveness of the lesson plan. - Note what worked well and what could be improved for future lessons. **Additional Resources:** - Textbook chapters on Demand and Supply of Money - Online interactive simulations of monetary policies - Articles on current monetary policy news and analysis --- By the end of this lesson, students should have a firm grasp of how the demand and supply of money operate, the factors influencing them, and the ability to illustrate these concepts graphically.