International Economics A
Theme: Germany’s economy
The assignment questions without appendices are released at 9 AM.
The appendices are released at 9.45 AM.
Instructions
At the start of the exam, only the assignment questions will be released, which you can use for preparation individually or in groups.
After 45 minutes, the appendices will be released. The remaining 4 hours and 45 minutes are used to write an individual response.
The assignment consists of 3 assignments and 8 appendices.
If, unexpectedly, hashtags (#) appear in the Excel attachments, you can manually adjust the column width.
In the answer template, there is a Word document listing all questions with their corresponding appendix references, which you can use for your answers.
You should cite sources in your responses when incorporating appendices in assignment 2, but this is not necessary for assignments 1 and 3.
The percentages below indicate how much of the exam time you should allocate to answering each assignment.
Assignment 1 - ca. 15%
Assignment 2 - ca. 55%
Assignment 3 - ca. 30%
Grading is based on an overall assessment, which means that the structure of the response and general competencies from the subject of international economics are included in the evaluation.
Assignment 1 – allocation of time approx. 15%
1a
Between 2015 and 2014, Germany’s GDP has increased by 7.4%, while GDP per capita has increased by 5%. Appendix 1 shows the data for Germany's total GDP and GDP per capita over this period.
Calculate the development of GDP and GDP per capita. Present your calculations in an illustration and comment on the development.
1b
It is evident from appendix 2 that Germany is experiencing demographic challenges.
Based on appendix 2, account for these challenges and explain how they influence the economy in Germany.
1c
Professor Jesper Rangvid states in appendix 3: “If investments are made in infrastructure, it could boost the growth potential of an economy that has been at a complete standstill for several years.”
Explain the economic considerations underlying the economic policy recommended by Jesper Rangvid.
Assignment 2 – allocation of time approx. 55%
2a
Based on the macroeconomic indicators in appendix 4 and the article in appendix 5, analyze the expected economic development in Germany in 2026.
Identify the most significant challenges for the German economy.
2b
In appendix 6, Ulrik Bie states: “These years are existential for the German economy and thus also for Europe as a whole – and Denmark. If the German economy fails to undergo the structural transformation necessary to accelerate growth, it is difficult to see how the country will generate the high-paying jobs required to fund increased defense spending, the welfare state, and the green transition.”
Assess based on appendices 5, 6, 7, and 8 the importance of competitiveness for the German economy.
Appendix 8: Will Germany ever escape its economic crisis, DW News, October 2025
Assignment 3 - allocation of time approx. 30%
Write a 600-word policy brief as an advisor to the German government.
The policy brief must present a recommendation that increases Germany's economic growth and competitiveness.
You must apply economic policies that solve short- and long-term challenges.
Base the recommendations in your policy brief on the insights from all appendices, as well as your findings from assignments 1 and 2.
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A policy brief typically has:
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Answer template
You can find the answer template by clicking here.
List of appendices
Appendix 1: GDP and GDP per capita in Germany 2015-2024, Destatis, 2025
Appendix2: Burden on the Young from “German Downturn”, Weekendavisen, December 8, 2025, and data from World Bank
Appendix 3: Rangvid: Germany Can Go All In on Debt, Børsen, March 10, 2025
Appendix 4: Selected economic indicators for Germany, EU-Commission, autumn 2025
Appendix 5: Germany’s economic crisis threatens the entire European region, Berlingske, 28 September 2025. (Excerpt from the article, part 1)
Appendix 6: Germany’s economic crisis threatens the entire European region, Berlingske, 28 September 2025. (Excerpt from the article, part 2)
Appendix 7: Making Germany Grow Again, IMF, June 2025. (Translated and adapted)
Appendix 8: Will Germany ever escape its economic crisis, DW News, October 2025 (found in assignment text 2b)
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