This economics report examines the Australian economy through the lens of Gross Domestic Product (GDP) components, including consumption, investment, government spending, and net exports, using data from the Australian Bureau of Statistics (ABS) from 1987 to 2018. The report analyzes trends in these components and provides economic explanations for observed patterns. Furthermore, the report investigates the concept of real wages, differentiating it from nominal wages, and assesses the impact of low real wage growth on macroeconomic equilibrium, utilizing aggregate demand and supply models. The analysis incorporates supporting evidence from articles to illustrate real-world scenarios. Finally, the report explores potential government policies aimed at mitigating the negative consequences of prolonged periods of low real wage growth, concluding with a summary of key findings and references.
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