Economics 101: Analysis of Australian GDP and Wage Growth

This economics assignment delves into the Australian economy, analyzing its Gross Domestic Product (GDP) and wage dynamics. The assignment utilizes data from the Australian Bureau of Statistics (ABS) to examine the four expenditure components of GDP: consumption, investment, government expenditure, and net exports, from 1987/88 to 2017/18. These components are plotted over time to identify patterns and provide economic explanations for the observed trends, supported by data sources and citations. The second part of the assignment explores the impact of low real wage growth on macroeconomic equilibrium in Australia, using diagrams to illustrate the effects. It examines factors contributing to stagnant wage growth, such as union membership decline, business reluctance to increase wages, and the end of the mining boom, and proposes government interventions to stimulate wage growth, including policies to promote job creation and adjustments to monetary and budgetary policies. The analysis incorporates evidence from media reports and economic principles to inform the discussion and support the conclusions.