Indiana Social Studies GE.7.4

Social StudiesGrades 9–12Economic Stabilization

The Standard

Explain how the use of fiscal policy affects budget deficits or surpluses and the national debt.

2026 Indiana Academic Standards: K-12 Social Studies

Teacher's field guide

What Students Need to Do: Students compare federal tax revenue with spending to identify a yearly deficit or surplus. They explain how tax and spending changes affect that balance and how borrowing affects the national debt.
What Mastery Looks Like: Given $100 billion in revenue and $120 billion in spending, a student finds a $20 billion deficit. They explain that borrowing to cover it adds to the debt, while a later surplus can reduce the debt.
Common Misconceptions: Students often confuse a one-year deficit with the total national debt. Some think one surplus wipes out all debt or that cutting taxes always reduces borrowing.
How to Assess It: Exit ticket: Starting debt is $500 billion, revenue is $100 billion, and spending rises from $120 billion to $130 billion with no tax change. Assuming no interest, find the new deficit and debt, and explain the change.

Lesson moves

Give groups 100 paper tax tokens and a 120-token spending list; have them mark the gap and add it to a debt ledger.
Ask students to write two sentences answering, 'Why might lawmakers accept a larger deficit during a recession?' using one specific tax or spending change.
Partners race through four revenue and spending cards, calculating each yearly balance and updating a running debt total.
Project a Congressional Budget Office budget chart; have students circle receipts and outlays, then mark how the deficit affects debt.

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A ready-to-print activity worksheet aligned to GE.7.4, with an answer key for the teacher on its own page. No account needed.

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