
Grades 9-12
MCEE Presents: Viewing Sustainability through an Economic Lens
Presenter: Minnesota Council on Education
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Students learn the definition of marginal propensity to consume and marginal propensity to save. After spending time practicing computing what these terms mean, students participate in a simulation to demonstrate how the marginal propensity to consume and marginal propensity to save influence the economy through the multiplier effect. Then they learn about the simple spending multiplier, and how economists may use the marginal propensities to consume and save in order to approximate the total effect on the overall economy.
60 minutes
Consumer spending is always in the news, and almost all students hear information regarding it no matter how removed they are from political discourse. However, public understanding of consumer spending and the multiplier effect is poorly understood. Students will use their knowledge of ratios to analyze the marginal propensities to consume and save. The essential part of the lesson is when students use this knowledge to calculate spending multipliers for the economy. They see how changes in consumer spending influence economic growth or contraction of the economy. This lesson is designed for an Introductory Algebra course, and serves as a way to apply student knowledge of ratios to the real world.
Grades 9-12
Presenter: Minnesota Council on Education
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