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Using a Problem-Based Learning Exercise to Motivate Intermediate Macroeconomics Students to Learn the IS-LM Model

The author describes a Problem-Based Learning (PBL) group assignment in which students predict macroeconomic outcomes of various real-world events before they have learned about the IS-LM model that is covered in Intermediate Macroeconomics textbooks. The author also gives a brief history of the use of PBL, describes how it benefits students and teachers of economics, outlines how it can be successfully implemented, and summarizes challenges that arise in its implementation. In a Problem-Based Learning environment, students confront contemporary dilemmas that through investigation, research and cooperative input allows for more than one possible solution. Students work in small groups to tackle problems, and in the process they discover their need to understand certain concepts and thus become more motivated to learn.