Assessmen
Task
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
Use of graphs and diagrams in your essay is highly encouraged, as this will display to the marker your understanding and ability to analyse a highly topical issue in Macroeconomics. When incorporating graphs into your essay, please adopt the following three criteria:
1. original (not a screenshot from your text) incorporating labels;
2. correctly applied; and
3. adds to your analysis
Additionally, this essay should be submitted in essay format, using Harvard style referencing. It is also expected that you include at least 5 sources in your essay. Suggested sources include your textbook, journal articles from the ACU library's online databases, and websites, as long as they are reputable (major media sources, government websites (ABS, RBA, IMF etc)).
As an example, a suggested format for your essay is as follows;
1. Introduction
2. Discussion of low wage growth in Australia (using appropriate data)
3. Risks of low wage growth
o Theory 1
o Theory 2
o (Theory 3)
4. Conclusion
5. Bibliography
6. (Appendices).