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
