Keynesian Economics with Balloons – An Activity to Expand Student Engagement with Economic Policy

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The many facets of the Keynesian model can seem daunting for students in a Principles of Macroeconomics class. This article provides a classroom activity that engages students while reinforcing the graphs, terminology, and policy implications of the model of aggregate demand and aggregate supply. Using balloons and other materials, students will work in groups to recognize short-run gaps and identify appropriate policies to restore full employment. Graphical representations and questions for discussion are provided with each learning activity included. Further, this exercise is flexible to accommodate variances in class period lengths, labeling conventions, and follow-up learning activities and assessments.

Jennifer Logan