With your starting point in appendix 1, calculate and illustrate graphically the following:
The development in German exports in general and for individual markets (countries).
The importance of individual markets.
With our starting point in appendix 1, we have to calculate the index numbers of the German export market from year 2000 to year 2018. In appendix 1, we are giving the information on the German export market.
We are giving information on both the individual countries, all other countries and all the countries combined. For us to be able to illustrate the changes in the German export market, we have to use the index calculation.
This means that any change to the four components of aggregate demand will have an impact on Germany's GDP. All the components of aggregate demand play an important role. Without each component, the GDP would be incorrect.
For years the German economy has been viewed as one of strongest economies in the whole world. Germany has the biggest economy in Europe and is also the strongest. However, all of this changed when Covid-19 surfaced.
Before the Covid-19 was declared as a worldwide pandemic, Germany was expected to have a yet successful year, but because of Covid-19 the GDP for Germany in year 2020 was instead expected to be -8,8 which is an abominable result.
Analyze the reasons for the negative growth expected in 2020, applying the national income balance (aggregate expenditure equation):
In this assignment we had to look at the data found in appendix 2, and analyze the negative growth expected in Germany in 2020 caused by the Covid-19 virus. We will here again use the aggregate expenditure equation, as in assignment 2 a.