Business Economics Report: Australian GDP and Wage Dynamics

This report examines key aspects of Australian business economics, focusing on the trends in different expenditure components of Gross Domestic Product (GDP) from 1987 to 2018. It analyzes consumption, investment, government expenditure, and net exports, highlighting their real per capita trends and contributing factors. The report also investigates the issue of low real wage growth in Australia, exploring its impact on labor supply, macroeconomic equilibrium, and the overall economy. It discusses factors contributing to low wage growth, such as low inflation expectations and slow productivity, and analyzes the effects on aggregate demand and supply. The report concludes by summarizing the current situation in Australia, referencing recent wage growth data and the challenges faced by workers, including the rising costs of essential consumer products. The report provides a comprehensive overview of these economic issues, offering a detailed analysis of the trends and impacts.