Economics · Year 12

Active learning ideas

The Phillips Curve

Active learning works well for the Phillips Curve because it combines data skills with economic theory, letting students see the trade-off visually rather than memorize abstract graphs. When students plot real UK data from the 1960s, they connect the theory to historical outcomes, making the concept more tangible and memorable.

• National Curriculum Attainment Targets
• A-Level: Economics - Inflation and Unemployment
• A-Level: Economics - Macroeconomic Performance

• 25–50 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Flipped Classroom
• 30 min · Pairs

Pairs Activity: Plotting the SRPC

Give pairs UK quarterly data on inflation and unemployment from 1965 to 1980. Students plot points on graph paper, fit a curve, and label the trade-off. Pairs then predict outcomes from a demand shock and share with the class.

Explain the short-run trade-off between inflation and unemployment as depicted by the Phillips Curve.

Facilitation Tip

For the Pairs Activity, provide printed UK data points from the 1960s so students plot accurately and trace the downward slope together.

What to look for

Present students with a graph showing a short-run Phillips Curve. Ask them to label the axes, indicate a point representing high unemployment and low inflation, and then draw a new SRPC to the right, explaining what event caused this shift.

• Understand
• Apply
• Analyze
• Self-Management
• Self-Awareness

Activity 02

• Flipped Classroom
• 45 min · Small Groups

Small Groups: SRPC Shift Simulation

Distribute event cards such as oil price rises or rising wage expectations to small groups. Groups draw an initial SRPC, apply events to shift it, and calculate new inflation-unemployment equilibria. Groups present shifts and vote on the most impactful event.

Analyze the factors that can shift the short-run Phillips Curve.

Facilitation Tip

During the SRPC Shift Simulation, circulate with sticky notes to label shifts caused by supply shocks or expectation changes as groups present.

What to look for

Pose the question: 'If a government aims to reduce unemployment, what are the potential short-term gains according to the Phillips Curve, and what are the long-term risks if inflation expectations rise?' Facilitate a class debate on the effectiveness of demand-side policies.

• Understand
• Apply
• Analyze
• Self-Management
• Self-Awareness

Activity 03

• Flipped Classroom
• 50 min · Whole Class

Whole Class Debate: Short-Run vs Long-Run Policies

Split the class into two teams: one advocating fiscal stimulus using SRPC logic, the other highlighting LRPC risks. Teams prepare arguments with graphs, debate for 20 minutes, then vote and debrief on policy credibility.

Differentiate between the short-run and long-run Phillips Curves and their policy implications.

Facilitation Tip

For the Whole Class Debate, assign roles like central bank governor or trade union leader to ensure balanced arguments and student ownership of perspectives.

What to look for

Ask students to write down one key difference between the short-run and long-run Phillips Curves and explain why this difference is important for a central bank's policy strategy.

• Understand
• Apply
• Analyze
• Self-Management
• Self-Awareness

Activity 04

• Flipped Classroom
• 25 min · Individual

Individual Task: Personal Phillips Curve Model

Students receive recent ONS data. Individually, they construct a modern SRPC and LRPC on digital tools or paper, note potential shifts from Brexit, and write a short policy recommendation.

Explain the short-run trade-off between inflation and unemployment as depicted by the Phillips Curve.

Facilitation Tip

In the Individual Task, provide graph templates with pre-labeled axes and space for annotations to guide precision and reflection.

What to look for

Present students with a graph showing a short-run Phillips Curve. Ask them to label the axes, indicate a point representing high unemployment and low inflation, and then draw a new SRPC to the right, explaining what event caused this shift.

• Understand
• Apply
• Analyze
• Self-Management
• Self-Awareness

A few notes on teaching this unit

Teachers often start with the plotting activity to ground theory in concrete data, avoiding the trap of lecturing without visuals. Research suggests avoiding overemphasis on the long-run trade-off early on, as students grasp the short-run version more intuitively. Use real-world examples like the 1970s stagflation to link AD-AS to Phillips Curve shifts, reinforcing connections across topics.

Successful learning looks like students confidently explaining the difference between short-run and long-run trade-offs and using the graph to evaluate policy choices. They should analyze shifts in the curve, not just draw it, showing they grasp the role of expectations and supply shocks.

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Watch Out for These Misconceptions

• During the SRPC Shift Simulation, watch for students assuming the Phillips Curve shifts only with demand policies, ignoring supply shocks or expectation changes.

  Use the simulation’s sticky notes to label shifts as demand-driven, supply-driven, or expectation-driven, prompting groups to justify their classifications with historical evidence.

• During the Pairs Activity, watch for students treating the Phillips Curve as a fixed long-run relationship rather than a short-run trade-off.

  Have pairs annotate their graphs with ‘short-run only’ and discuss why the curve’s slope disappears in the long run, using the natural rate as a reference point.

• During the Whole Class Debate, watch for students claiming lower unemployment always requires higher inflation permanently.

  Use the debate to contrast short-run gains with long-run risks by having students sketch revised Phillips Curves as expectations adjust, tying arguments to real-world outcomes.

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Methods used in this brief

• Flipped Classroom