In this macroeconomic analysis divided into four assignments, we will try to give a full description of the economic situation in Germany for the last forty years and argue on the possible macroeconomic factors and events that have possibly contributed to it. Germany has experienced a steady growth in the post World War II era and it keeps developing with positive growth rates. Fluctuations are of course present, but they can mainly be explained with by various events through the years.

The well known German miracle was a phenomenon observed during the early 1960s, when Germany was growing at very high growth rates. This was followed by a decrease in the growth rates during the later decades, remaining positive nonetheless. A historic event was the reunification of Germany, which brought about sharp inequalities among different regions. This led to stagnation throughout the late 1990s and early 2000s. Growth rates were rather low, and they turned negative in year 2009, following the global crisis that affected the solid German economy as well.

Thanks to consumer demand and exports, Germany made its way out the crisis during the last year. German economy relies heavily on government intervention, but is far from a socialist type of economy and closer to the social economies of the Western European countries. In the first assignment we will be focusing mainly on aggregate demand and its constituents. As a group we have endeavoured to research the exercises given for this assignment. In this report we present our results following the outline of the exercises.

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