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 to analyse this topic:
- 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:
- original (not a screenshot from your text) incorporating labels;
- correctly applied; and
- 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, journal articles (peer-reviewed) from the 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；
- Introduction
- Discussion of low wage growth in Australia (using appropriate data)
- Risks of low wage growth
- Theory 1-INFLATION
- Theory 2-UNEMPLOYMENT
- (Theory 3)- The RBA (RESERVE BANK AUSTRALIA)
- Conclusion
- Bibliography
- (Appendices)