"wage growth is weak and inflation is below its target range" for the Australian economy.

In 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 critera:

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 from the A, and websites, as long as they are reputable (major media sources, government websites (ABS, RBA, IMF etc)).

WORD COUNT 1500 Words

As an example, a suggested format for your essay is as follows；