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Question: Macroeconomics broad thinking question
Wage growth has slowed considerably in many advanced economies since the Global Financial Crisis. Compare and contrast, and explain, the likely causes of slow wage growth in Australia, Europe and the United States. Discuss the macroeconomic impacts of slow wage growth on the Australian, European and US economies; understand the mechanisms by which these impacts would occur in each case. Evaluate the policy options that the Australian, European and US governments have at their disposal to manage the impacts of low wage growth; i.e., be able to explain why these policies may or may not be effective in each case. Make a judgement on how likely it is that wages growth might accelerate in Australia, Europe and the US within the near future, i.e. with the next 5 years.
Use economic theories/models as support.
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