Activity 01
Budget Allocation Simulation
Divide students into groups representing different government departments. Provide each group with a hypothetical budget and a set of national economic goals. Groups must negotiate and justify their spending proposals to a 'parliament' (the rest of the class) to achieve the best overall economic outcome.
Analyze how a budget deficit impacts future economic sovereignty.
Facilitation TipDuring the Mock RBA Board Meeting, assign roles like Governor, Treasury representative, and industry analysts to ensure diverse perspectives are voiced.
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Activity 02
Case Study Analysis: Infrastructure Project
Present students with a real-world government infrastructure project (e.g., a new highway or public transport system). Students research the project's costs, funding sources, expected economic benefits, and potential social or environmental drawbacks, then present their findings.
Explain the trade-offs created by government spending policies between social equity and growth.
Facilitation TipWhen creating the Transmission Map, have groups physically arrange dominoes to represent each step of the mechanism, reinforcing the idea of sequential effects.
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Activity 03
Formal Debate: Deficit Spending
Organize a formal debate on the motion 'Government deficit spending is essential for economic recovery.' Students research arguments for and against deficit spending, preparing opening statements, rebuttals, and closing arguments.
Evaluate who benefits and who bears the costs of a corporate tax cut.
Facilitation TipFor The Saver vs. The Borrower, provide real household budget examples so students can ground their arguments in concrete numbers rather than abstract theory.
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Generate Complete Lesson→A few notes on teaching this unit
Teaching fiscal policy works best when students confront trade-offs directly. Avoid long lectures on definitions—instead, use simulations to reveal unintended consequences. Research shows that when students experience the ‘time lag’ in policy effects, they retain the concept longer. Keep the focus on how policy choices ripple through the economy, not just the mechanics of rates or spending.
By the end of these activities, students will explain the RBA’s role in setting the cash rate, map how spending affects economic activity, and analyze trade-offs between different economic groups. Success looks like clear connections between policy actions and real-world outcomes in their discussions and work samples.
Watch Out for These Misconceptions
During the Mock RBA Board Meeting, watch for students assuming politicians control interest rates.
Use the meeting script to highlight excerpts from the RBA Charter, then have students discuss why independence is included in the document. Ask them to compare their assumptions with the actual legal framework.
During the Collaborative Investigation: The Transmission Map, watch for students thinking interest rate changes affect everyone immediately.
Have groups physically space their dominoes to represent the 6-18 month lag. Ask them to label each step with a real-world example, such as business loans or consumer spending patterns.
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