Indiana Social Studies GE.7.3

Social StudiesGrades 9–12Economic Stabilization

The Standard

Analyze how the government uses fiscal policy to promote price stability, full employment, and economic growth.

2026 Indiana Academic Standards: K-12 Social Studies

Teacher's field guide

What Students Need to Do: Students explain how government spending and taxes can change demand, jobs, prices, and growth. They choose a response to a recession or rising inflation and explain the tradeoffs.
What Mastery Looks Like: Given unemployment and inflation figures, a student recommends a specific spending or tax change. They trace its likely effects on demand, jobs, and prices, and name a possible cost.
Common Misconceptions: Students may confuse government tax and spending decisions with the central bank changing interest rates. They may think more spending always creates jobs without affecting prices or the deficit.
How to Assess It: Exit ticket: Inflation is 7% and unemployment is 3%. Should Congress raise taxes, cut spending, or do neither? Explain one likely effect on prices and one possible cost.

Lesson moves

Give groups 20 spending tokens and 15 goods cards; add government purchases or collect taxes, then compare unsold goods and price bids.
Ask students to write: If prices rise while unemployment stays low, should Congress cut spending or raise taxes? Who might be hurt?
Play three rounds with recession and inflation cards; students choose a tax or spending card and explain its likely effect on jobs and prices.
Show a federal road repair funding headline and a local paving job posting; ask how the spending might affect jobs and future growth.

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