Activity 01
Simulation Game: Federal Reserve Interest Rate Decision
Divide students into 'Federal Reserve Board' groups. Each group receives a one-page economic snapshot (inflation rate, unemployment, GDP growth) and must vote on whether to raise, lower, or hold interest rates. Groups present their rationale before comparing decisions and discussing real-world consequences.
Analyze the arguments for and against government intervention in the economy.
Facilitation TipDuring the simulation, give each student a role card with a specific macroeconomic indicator so they must justify their vote using real data.
What to look forPose this question: 'Imagine a local bakery is struggling due to rising ingredient costs and decreased customer spending. What specific fiscal policy tool could the local government use to help, and what are two potential positive or negative consequences of that action?'