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BSD113-Economics | Growth Rate in Wages of Australian Economy

On February 20 this year, the International Monetary Fund (IMF) stated that "wage growth is weak and inflation is below its target range" for the Australian economy. What risks does a slow growth rate in wages pose to the Australian economy, and why are economists and governments so eager to see a general rise in wages for everyone?

The following theories in Macroeconomics may be used to analyse this topic:

  • Aggregate Demand and Aggregate Supply
  • Unemployment
  • Inflation
  • The RBA

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