Aufgabe HT 1 - Teilaufgabe 1 · Abitur NRW Sozialwissenschaften GK · Haupttermin · bilingual Englisch 2023

Describe four economic policy goals in Germany as set out in the “stability and growth law” (“magic square”) and the four indicators that go with them.

Lösung: 1. Price stability (Stabilität des Preisniveaus): Inflation rate, typically measured by the Harmonised Index of Consumer Prices (HICP) / consumer price index using a basket of goods. 2. High level of employment (Hoher Beschäftigungsstand): Unemployment rate (ratio of registered unemployed to total labor force: employed plus unemployed). 3. Steady and adequate economic growth (Stetiges und angemessenes Wirtschaftswachstum): Real gross domestic product (GDP) adjusted for price level changes. 4. External economic balance (Außenwirtschaftliches Gleichgewicht): Foreign trade balance ratio (Außenbeitragsquote: exports minus imports relative to GDP).

Describe one possible conflict of objectives between two of these goals.

Lösung: Trade-off example between steady and adequate economic growth and price stability: While low interest rates can provide a growth impulse by making consumption and investments cheaper, they can simultaneously jeopardize price level stability through an increased money supply, higher velocity of circulation, and demand rising faster than supply.