INFLATION

Introduction to Inflation and Deflation

By the end of the lesson, the learner should be able to:
Define inflation as persistent rise in general price levels. Distinguish between inflation and deflation. Explain impact on purchasing power and money value. Analyze real-world examples of inflation.

Brainstorming on price changes students have observed. Comparison of prices over different time periods. Case studies on countries experiencing inflation. Discussion on purchasing power changes with price examples.

Price comparison charts from different years, Country inflation examples, Purchasing power calculation sheets, Real product price data

KLB Secondary Business Form 4, Pages 144-145

INFLATION

Consumer Price Index (CPI) Concepts

By the end of the lesson, the learner should be able to:
Define Consumer Price Index and its purpose. Explain index numbers and their importance. Identify factors in CPI construction: basket selection, base period, price data. Understand CPI as inflation measurement tool.

Analysis of typical consumer basket of goods. Selection of base year with stable prices. Price data collection simulation. Discussion on representativeness of basket items. Index number concept demonstration.

Sample consumer baskets, Base year price data, Price collection sheets, Index calculation examples, Consumer survey materials

KLB Secondary Business Form 4, Pages 144-146

INFLATION

CPI Calculation - Simple Average Method

By the end of the lesson, the learner should be able to:
Calculate price relatives for individual commodities. Compute Consumer Price Index using simple average method. Interpret CPI results and their meaning. Practice with multiple commodities and time periods.

Step-by-step CPI calculation exercises. Price relative computation for various goods. Simple average CPI calculation practice. Interpretation of results meaning for purchasing power. Group work on different commodity baskets.

Price data for multiple commodities, Calculation worksheets, Calculators, CPI formula charts, Practice problem sets

KLB Secondary Business Form 4, Pages 146-147

INFLATION

CPI Calculation - Weighted Average Method

By the end of the lesson, the learner should be able to:
Understand importance of weighting in CPI calculation. Assign weights to different commodities based on consumption patterns. Calculate weighted average CPI. Compare simple vs weighted average results.

Weight assignment exercises based on family budgets. Weighted CPI calculation practice with real data. Comparison between simple and weighted average methods. Analysis of why weighting gives more accurate results.

Family budget examples, Weight assignment sheets, Weighted calculation templates, Comparison tables, Advanced calculation problems

KLB Secondary Business Form 4, Pages 147-148

INFLATION

Types of Inflation and Demand-Pull Inflation

By the end of the lesson, the learner should be able to:
Classify inflation by causes: demand-pull and cost-push. Define demand-pull inflation as "too much money chasing few goods." Identify causes: increased government expenditure, credit creation effects, increased incomes.

Demand-pull inflation simulation using classroom market. Analysis of government spending impact on prices. Credit creation and money supply exercises. Case studies on income increases and price effects.

Market simulation materials, Government spending examples, Money supply charts, Income increase scenarios, Demand-pull diagrams

KLB Secondary Business Form 4, Pages 148-150

INFLATION

More Causes of Demand-Pull Inflation

By the end of the lesson, the learner should be able to:
Explain additional causes: general shortages, increased consumer expenditure, population growth effects. Analyze expectation-driven demand increases. Demonstrate how shortages pull prices upward.

Shortage simulation exercises creating artificial scarcity. Analysis of population growth impact on demand. Expectation-driven buying behavior case studies. Consumer expenditure pattern analysis and price impact.

Shortage simulation materials, Population growth data, Expectation scenario cards, Consumer expenditure charts, Supply-demand graphs

KLB Secondary Business Form 4, Pages 149-150

INFLATION

Cost-Push Inflation and Its Causes

By the end of the lesson, the learner should be able to:
Define cost-push inflation where costs push prices upward. Identify causes: wage increases, tax increases, profit margin increases. Explain imported inflation through input cost increases.

Cost-push inflation demonstrations using production scenarios. Wage-price spiral simulation exercises. Tax impact on production costs analysis. Import price increase effects on local production costs.

Production cost scenarios, Wage-price spiral charts, Tax impact examples, Import price data, Cost-push diagrams

KLB Secondary Business Form 4, Pages 150-152

INFLATION

More Cost-Push Causes and Subsidy Effects

By the end of the lesson, the learner should be able to:
Analyze input cost increases other than labor. Explain reduction in subsidies impact. Demonstrate profit-push and tax-push inflation. Compare various cost-push mechanisms.

Input cost increase simulations using manufacturing examples. Subsidy removal impact analysis on prices. Profit margin increase exercises and price effects. Comprehensive comparison of all cost-push factors.

Manufacturing cost examples, Subsidy impact data, Profit margin scenarios, Input cost charts, Comprehensive comparison tables

KLB Secondary Business Form 4, Pages 151-152

INFLATION

Levels of Inflation

By the end of the lesson, the learner should be able to:
Distinguish between moderate, galloping, and hyper-inflation. Explain characteristics and percentage ranges. Analyze historical examples of different inflation levels. Assess economic impacts of each level.

Classification exercises using real country data. Historical case studies: Germany 1923 hyper-inflation. Moderate inflation benefits analysis. Comparison of inflation levels and their economic effects.

Historical inflation data, Germany 1923 case study, Country comparison charts, Inflation level classification sheets

KLB Secondary Business Form 4, Pages 152-153

INFLATION

Positive Effects of Inflation

By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.

Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.

Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts

KLB Secondary Business Form 4, Pages 153-154

INFLATION

Positive Effects of Inflation

By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.

Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.

Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts

KLB Secondary Business Form 4, Pages 153-154

INFLATION

Negative Effects of Inflation

By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.

Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.

Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials

KLB Secondary Business Form 4, Pages 154-155

INFLATION

More Negative Effects and Economic Impact

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies

KLB Secondary Business Form 4, Pages 155-156

INFLATION

More Negative Effects and Economic Impact

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies

KLB Secondary Business Form 4, Pages 155-156

INFLATION

More Negative Effects and Economic Impact

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies

KLB Secondary Business Form 4, Pages 155-156

INFLATION

Controlling Inflation - Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.

Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.

Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets

KLB Secondary Business Form 4, Pages 156-157

INFLATION

More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-158

INFLATION

More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-158

INFLATION

More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-158

INFLATION

Fiscal Policy Measures and Production Solutions

By the end of the lesson, the learner should be able to:
Explain reducing taxes on production to control cost-push inflation. Demonstrate subsidizing production effects. Show government production of scarce commodities. Analyze comprehensive fiscal policy approaches.

Production tax reduction impact analysis. Subsidy effect calculations on final prices. Government production case studies. Comprehensive fiscal policy design exercises for inflation control.

Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts

KLB Secondary Business Form 4, Pages 157-158

INFLATION

Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 158-159

INFLATION

Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 158-159

INFLATION

Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 158-159

INFLATION

Export Controls and Comprehensive Control Strategies

By the end of the lesson, the learner should be able to:
Explain export controls to prevent domestic shortages. Analyze combination of multiple control measures. Evaluate effectiveness of different approaches. Design comprehensive anti-inflation strategy.

Export control case studies and domestic market effects. Multi-pronged control strategy design exercises. Effectiveness evaluation of historical control measures. Comprehensive strategy presentations by groups.

Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials

KLB Secondary Business Form 4, Pages 158-159

INTERNATIONAL TRADE

Introduction, Types and Advantages

By the end of the lesson, the learner should be able to:
Define international trade. Distinguish between bilateral and multilateral trade. State advantages of international trade. Explain how trade promotes specialization and employment.

Q/A session on local trading experiences; Brainstorming on goods Kenya exports/imports; Group discussion on trade advantages with real examples; Analysis of technology transfer cases.

World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines

KLB Secondary Business Studies Form 4, Pages 162-164

INTERNATIONAL TRADE

Introduction, Types and Advantages

By the end of the lesson, the learner should be able to:
Define international trade. Distinguish between bilateral and multilateral trade. State advantages of international trade. Explain how trade promotes specialization and employment.

Q/A session on local trading experiences; Brainstorming on goods Kenya exports/imports; Group discussion on trade advantages with real examples; Analysis of technology transfer cases.

World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines

KLB Secondary Business Studies Form 4, Pages 162-164

INTERNATIONAL TRADE

Disadvantages of International Trade

By the end of the lesson, the learner should be able to:
Identify disadvantages of international trade. Explain how trade can lead to local industry collapse. Analyze imported inflation concept. Discuss cultural and sovereignty impacts.

Guided discussion on negative trade effects; Case study analysis of textile industry challenges; Q/A on dependency problems; Group work on cultural changes due to globalization.

Newspaper cuttings on industry closures, case study materials, charts showing trade impacts

KLB Secondary Business Studies Form 4, Pages 164

TERMS OF TRADE

Computing Terms of Trade

By the end of the lesson, the learner should be able to:
Define terms of trade. Calculate export and import price indices. Compute terms of trade using formulas. Interpret favorable and unfavorable terms of trade.

Exposition of terms of trade concept; Step-by-step calculation demonstrations; Worked examples with real data; Supervised practice on numerical problems.

Calculators, statistical data sheets, worked examples, formula charts

KLB Secondary Business Studies Form 4, Pages 164-166

TERMS OF TRADE

Factors Affecting Terms of Trade

By the end of the lesson, the learner should be able to:
Explain factors causing differences in terms of trade between countries. Analyze impact of commodity nature on trade terms. Discuss demand changes and trade restrictions effects. Evaluate world economic order influences.

Detailed exposition with country examples; Case study analysis of Kenya vs developed countries; Group discussions on commodity price variations; Q/A on trade restriction impacts.

Case study materials, charts comparing different economies, business magazines

KLB Secondary Business Studies Form 4, Pages 167-168

ECONOMIC DEVELOPMENT AND PLANNING

Economic Growth and Development Concepts

By the end of the lesson, the learner should be able to:
Define economic growth and economic development. Distinguish between economic growth and development. Explain measurement of economic growth rates. Identify structural changes accompanying economic development.

Q/A session on development indicators; Guided discussion on growth vs development differences; Analysis of Kenya's economic journey; Group work on identifying structural changes.

Statistical data on economic indicators, charts comparing developed vs developing countries, newspaper economic reports

KLB Secondary Business Studies Form 4, Pages 195-196

ECONOMIC DEVELOPMENT AND PLANNING

Characteristics of Under-development

By the end of the lesson, the learner should be able to:
Identify comprehensive characteristics of under-development. Explain high poverty levels and income disparity issues. Analyze unemployment problems and subsistence sector dominance. Discuss dependence on developed countries and infrastructure challenges.

Brainstorming session on development indicators; Detailed exposition of under-development characteristics; Group discussions on poverty and unemployment statistics; Visual analysis of infrastructure differences.

Statistical data on poverty and unemployment, photos showing infrastructure gaps, case study materials on developing countries

KLB Secondary Business Studies Form 4, Pages 197-199

ECONOMIC DEVELOPMENT AND PLANNING

Factors Hindering Development

By the end of the lesson, the learner should be able to:
Highlight factors that impede development including resource constraints. Explain inadequate capital and poor technology impacts. Analyze human resource endowment problems. Discuss unfavorable domestic environment effects on development.

Q/A session on development barriers; Detailed exposition of hindering factors; Case studies on technology gaps and brain drain; Group discussions on institutional barriers to development.

Case studies on development barriers, charts showing technology gaps, brain drain statistics

KLB Secondary Business Studies Form 4, Pages 200-202

ECONOMIC DEVELOPMENT AND PLANNING

Political, Social and Economic Institutional Factors

By the end of the lesson, the learner should be able to:
Explain how political institutions affect development progress. Analyze social institutions and cultural barriers. Discuss economic institutions and market efficiency roles. Evaluate extended family systems and work attitude impacts.

Detailed discussion on institutional roles; Case studies on governance and development correlation; Group analysis of cultural practices affecting development; Q/A on market efficiency and entrepreneurship promotion.

Governance case studies, cultural practice examples, charts showing institutional frameworks

KLB Secondary Business Studies Form 4, Pages 202-203

ECONOMIC DEVELOPMENT AND PLANNING

Political, Social and Economic Institutional Factors

By the end of the lesson, the learner should be able to:
Explain how political institutions affect development progress. Analyze social institutions and cultural barriers. Discuss economic institutions and market efficiency roles. Evaluate extended family systems and work attitude impacts.

Detailed discussion on institutional roles; Case studies on governance and development correlation; Group analysis of cultural practices affecting development; Q/A on market efficiency and entrepreneurship promotion.

Governance case studies, cultural practice examples, charts showing institutional frameworks

KLB Secondary Business Studies Form 4, Pages 202-203

ECONOMIC DEVELOPMENT AND PLANNING

Development Planning Process and Objectives

By the end of the lesson, the learner should be able to:
Define development planning concept and importance. Explain planning process including objective establishment. State government policy objectives for long-term development. Analyze resource identification and allocation in planning.

Guided discussion on planning necessity; Exposition of systematic planning process; Group work on identifying realistic planning objectives; Analysis of Kenya's development planning experience.

Kenya's development plan documents, planning process flowcharts, resource allocation examples

KLB Secondary Business Studies Form 4, Pages 202-204

ECONOMIC DEVELOPMENT AND PLANNING

Development Planning Process and Objectives

By the end of the lesson, the learner should be able to:
Define development planning concept and importance. Explain planning process including objective establishment. State government policy objectives for long-term development. Analyze resource identification and allocation in planning.

Guided discussion on planning necessity; Exposition of systematic planning process; Group work on identifying realistic planning objectives; Analysis of Kenya's development planning experience.

Kenya's development plan documents, planning process flowcharts, resource allocation examples

KLB Secondary Business Studies Form 4, Pages 202-204

ECONOMIC DEVELOPMENT AND PLANNING

Need for Development Planning and Benefits

By the end of the lesson, the learner should be able to:
Give reasons why development planning is necessary. Explain appropriate resource allocation through planning. Discuss planning role in stimulating national effort. Analyze planning support for foreign aid acquisition and project evaluation.

Group discussions on planning benefits; Case studies on successful planning outcomes; Analysis of foreign aid effectiveness with proper planning; Q/A on project evaluation importance and duplication avoidance.

Planning success case studies, foreign aid effectiveness reports, project evaluation examples

KLB Secondary Business Studies Form 4, Pages 203-204

ECONOMIC DEVELOPMENT AND PLANNING

Need for Development Planning and Benefits

By the end of the lesson, the learner should be able to:
Give reasons why development planning is necessary. Explain appropriate resource allocation through planning. Discuss planning role in stimulating national effort. Analyze planning support for foreign aid acquisition and project evaluation.

Group discussions on planning benefits; Case studies on successful planning outcomes; Analysis of foreign aid effectiveness with proper planning; Q/A on project evaluation importance and duplication avoidance.

Planning success case studies, foreign aid effectiveness reports, project evaluation examples

KLB Secondary Business Studies Form 4, Pages 203-204

ECONOMIC DEVELOPMENT AND PLANNING

Problems in Development Planning Implementation

By the end of the lesson, the learner should be able to:
State problems encountered in development planning at formulation stage. Explain implementation challenges including donor dependency. Analyze natural calamities impact on planning. Discuss political will and coordination problems in plan execution.

Exposition of planning challenges at different stages; Case studies on planning failures and successes; Group discussions on realistic vs over-ambitious planning; Analysis of natural disasters impact and political commitment importance.

Case studies on planning challenges, disaster impact reports, examples of successful and failed development projects

KLB Secondary Business Studies Form 4, Pages 204-206