GDP Components and Real Wage Growth in Australia

Economics
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Economics 1
Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................3
Consumption................................................................................................................................3
Investment....................................................................................................................................4
Government.................................................................................................................................5
Net exports...................................................................................................................................6
Question 2........................................................................................................................................7
Real wages...................................................................................................................................7
Impact of the low real wage growth on the economy..................................................................7
Article for support........................................................................................................................9
Government steps to mitigate the consequences.......................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Economics 2
Introduction
The report is prepared with the purposed to apply the economic values or concept that are related
to considerate the economy of the country and requirement for the administration intention in
order to communicate the examination and support the results.

Economics 3
Question 1
Gross domestic product is the entire worth of products shaped and services delivered in the
nation in the period of a year. This section includes the data on the four elements of GDP that
comprises consumption, investment, government and the net exports. The below given is the
details related to the expenditure elements of GDP: -
Consumption
The consumption component of GDP includes the household expenditure on the products and
facilities in market of Australia. Australian Bureau of Statistics (ABS) presents the data related
to the household consumption as the part of the GDP that shows data from 1987 to 2017. The
highest consumption by the Australian is recorded for the year 1992 with 58.93 and later in the
year 2016, the data shows 58.33 (Australian Bureau of Statistics, 2019). This is clear from the
graph given below: -
(Source: Australian Bureau of Statistics, 2019)