All Tied Up - AD-AS diagrams

Yesterday I took one of my IGCSE classes outside to construct large AD-AS diagrams using some old climbing rope, some playing cones and large A4 labels. The boys thoroughly enjoyed the lesson and learnt a lot from working in teams and applying the theory to a variety of scenarios.

Equipment: Labels (preferably laminated), old climbing ropes for the axes and curves and some playing cones for the equilibriums.

The lesson started off with a relay race. The students collected one piece of equipment at a time and brought it back to the rest of the team who constructed an AD-AS diagram. Points were awarded for the fastest team.

Following that I read out a series of scenarios e.g. expansionary fiscal policy, depreciated capital that is not replaced, increase in net immigration. For each scenario the students had to discuss in their teams which curve to shift and whether it was an increase or decrease. I then circulated round each group to check the diagram and ask for a justification. Points were awarded for each correct diagram and explanation.

For each scenario I asked a different student in each group for an explanation to ensure that the students were discussing the scenarios amongst themselves and that they all understood why AD or AS was shifting.

You could use these resources for other topics such as supply & demand, labour markets and even theory of the firm.

Give it a go!