Each dog is an individual, but in general German shepherds need a fair amount of exercise. They were bred to work and like to be active.
The type of exercise is up to you. Running, hiking, and playing ball are common forms. There are also sports such as herding, agility, flyball, etc that you and your shepherd can participate in.
Before beginning an exercise program it is important that your dog be checked out by a vet for any health problems. Make sure his or her hips, elbows, heart, and other body parts are in good condition and can handle the exercise.