FRG Economy

Question 1

Marshall Aid totalled to …….. between 48 and 52

Answer 1

$1.5 billion

Question 2

Deutschmark introduced which had…. less in circulation than RM

Answer 2

90%

Question 3

Unemployment fell from ……. 1950-60

Answer 3

11% in 1950 to 1.3% in 1960

Question 4

Reasons for the Economic Miracle - 1955 - 66

Answer 4

Investment Aid Law 1952 - provided 3.2 billion to industrial devlopment

• Joined EEC reducing tarrifs, Germany exported 23% of vehicles to Europe
• Work schemes rebuilt cities

Question 5

Erhard resigned in

Answer 5

1966

Question 6

CDU/SPD coalition grew economy by ….. in 1969

Answer 6

8.2%

Question 7

Oil crisis of 1973 meant

Answer 7

OPEC announced 70% increase in oil price and 5% decrease in supply

Question 8

Evidence of changing living standards

Answer 8

Car ownership rose from 2 mill in 1950 to 12.1 mill in 1960

Question 9

Investment Aid Law 1952 granted …. to industrial development

Answer 9

DM3.2 BILLION

Question 10

When was ECSC set up and what impact did it have on FRG

Answer 10

1951 - coal trade increased x10 amongst members

Question 11

What were some of Erhard’s reforms

Answer 11

• Abolished price controls
• Reichmark became Deutschmark (90% less in MS)
• Tax reforms - over 2400 dm decreased from 85% to 18%
• Social market economy - more TUs, no monopolies

Question 12

What impact did Erhard’s reforms have on absenteeism, production and employment

Answer 12

• Absenteeism halved from 9.5 hours a week to 4.2
• Unemployment fell from 11% in 1950 to 1.3% in 1960
• Industrial production rose 50% from June-December 1948

Question 13

1949-55 salaries rose …. %

Answer 13

80%

Question 14

When was the EEC set up and why did the FRG benefit so much

Answer 14

1957 - FRG exported 17% of Europe’s electricals, 23% of chemicals and 25% of vehicles.

Question 15

balance of trade went from ….. in 1950 to …. in 1960

Answer 15

-3 billion to 5.2 billion DM

Question 16

By 1958, industrial production was …..X the amount at beginning of 1948

Answer 16

4x

Question 17

Car ownership statistic

Answer 17

1950 - 2 mill

1965 - 12.1 mill

Question 18

Consquences of 1965-69 recession

Answer 18

Trade and production fell, unemployment increased

Question 19

How did the gov deal with the 1965-69 recession

Answer 19

• increased welfare spending from 25% to 33% of gdp
• introduced economic stabilisation law in 67 allowing gov to intervene
• introduced cartels to stop prices rising
• DM revalued - increased 9.3% - because Xs were good quality people paid the extra

Question 20

Consequences of Oil Crisis for Germany

Answer 20

GNP fell from 5.3% in 1973 to 0.4% in 1974
Had to pay 17bill DM more for imports
Debt increased 26% by 1975

Question 21

How Germany dealt with oil crisis

Answer 21

Car free sundays, ban on migrant worker recruitment, nuclear energy research, 8billion DM grants to private sector, abolished monopoly regulations so they could benefit from Eos

Question 22

Average growth rate in the 1980s

Answer 22

3.6%

Question 23

How did cost of living fall from 1950-1990

Answer 23

1kg of pork was 2.5hrs of work in 1950, 0.33 hours by 1990

Question 24

Housing ownership only …. compared to around …. in most of Western Europe

Answer 24

37.8% compared to 50%

Question 25

Kohl capped public spending at ….

Answer 25

3%

Question 26

Unemployment in 1989 was only …..% (less than neighbours)

Answer 26

7.6%