Inflation Essentials

Overview

This lesson is lesson 3 of 25 in the unit “Understanding Economic Trends”. Students build from earlier work on prices and trends by defining inflation, explaining likely causes using simple economic thinking, and evaluating impacts on different groups.

Learning intentions

• WALT define inflation and distinguish it from disinflation and deflation.
• WALT explain inflation causes using economic concepts (e.g., cost-push vs demand-pull).
• WALT analyse impacts of inflation on households, businesses, and the government.
• WALT use a graphic organiser to map causes → mechanisms → effects.

Success criteria

• I can explain what inflation means as a “general level of prices” changing over time.
• I can identify at least two causes of inflation and link them to effects.
• I can describe impacts on different groups in New Zealand society using economic reasoning.
• I can correctly complete a graphic organiser with clear cause-and-effect links.

Curriculum links

• NCEA AS91222 — Analyse inflation using economic concepts and models (defining inflation concepts, explaining causes, and analysing impacts on groups).
• NZ Curriculum Refresh — Social Sciences (Economics) focus on understanding economic trends using concepts and models to make sense of real-world issues.
• Key competencies: thinking (cause-and-effect reasoning), participating and contributing (discussion), using language/symbols (economic definitions and organiser).

Lesson structure (75 minutes)

1. 0–8 min · Hook (Price-change sprint). Teacher shows three “shopping receipt” scenarios with different price changes over time and asks: “What would people feel, and why might it differ?” Students write a 1–2 sentence response on mini-whiteboards, then share with a partner.

2. 8–22 min · Direct teach (Define and classify). Teacher explains inflation, disinflation, and deflation using plain examples, emphasising “general level of prices” and “over time”. Students complete a quick guided note sheet: definition, non-example, and one example for each term.

3. 22–45 min · Model causes (Cost-push vs demand-pull). Teacher introduces two simple cause patterns:

• Demand-pull: demand rises faster than supply
• Cost-push: production costs rise, reducing supply Teacher uses a think-aloud to link a cause pattern to a chain of effects (prices up → purchasing power down → behaviour changes). Students work in groups to fill the “Cause → Mechanism → Effects” graphic organiser using one scenario card provided by the teacher.

4. 45–60 min · Impacts gallery (Who is affected?). Teacher sets up four mini “gallery corners” labelled: households, businesses, workers, government (or central/local services). Students rotate (with timer) and add one impact statement + one justification sentence to each station sheet based on their organiser.

5. 60–70 min · Whole-class check + clarify misconceptions. Teacher selects two student organiser examples (anonymous) and asks the class to judge: “Is the cause linked to the effect logically?” Students do a short “improve it” edit on their own organiser—fix one weak link.

6. 70–75 min · Exit ticket (Assessment for learning). Students answer:

• “Define inflation in your own words.”
• “Choose one cause and name one impact on a group in New Zealand.”

Resources

• Scenario cards showing price changes and context clues (teacher-made)
• Graphic organiser template: “Cause → Mechanism → Effects” (1 per student)
• “Impacts gallery” station sheets (4 sheets)
• Mini-whiteboards or scrap paper for quick responses
• Printed guided notes: definitions and non-examples
• Timer for rotations
• Dyslexia-friendly reading option: audio-recorded teacher script or teacher-read scenarios (provided to students)

Assessment

• Formative checks: price-change sprint responses (teacher scans for misconceptions)
• Formative checks: graphic organiser completion and peer discussion during group work
• Exit ticket evaluated against success criteria: definition accuracy and cause→effect justification

Differentiation

• Scaffolding: provide sentence starters for the organiser (e.g., “When demand rises faster than supply… therefore prices…”).
• Graphic support: colour-code organiser boxes (blue = cause, green = mechanism, orange = effects).
• Support for reading: offer teacher-read scenario cards or an audio version; provide shorter scenario text strips for students who need reduced reading load.
• Extension (advanced learners): challenge students to add a third chain link that involves expectations or bargaining (e.g., “If people expect prices to rise, they may adjust wages/contracts, which can reinforce inflation”), and label it clearly as an additional step in the mechanism.

Extension (optional as per teacher instruction)

• Students find a current news article relating to inflation (provided by teacher or self-chosen if school policy allows).
• In the next lesson, students bring a short summary (3 bullet points): what happened to inflation, what cause(s) are suggested, and who is affected.