Lesson 1: Circular Flow Model & National Income
Duration of Days: 3
Lesson Objective
Students will explain how households, businesses, and government interact in the economy using the circular flow model and national income accounts.
How does money flow through an economy?
Why must total spending equal total income?
C3: D2.Eco.11.9-12 (Use economic indicators to analyze national economies)
CCSS: RH.11-12.2 (Determine central ideas of a text)
DOK 2 – Skill/Concept
Students examine the circular flow model to understand how production, income, and spending are interconnected. This lesson establishes the conceptual framework for GDP measurement.
Visual diagrams and guided notes
Think-pair-share discussion
Optional extension connecting circular flow to current economic data
Exit ticket explaining the circular flow model