The researchers analyzed the ups and downs of Australia's economy by breaking down the data into trends, cycles, and noise. They found that traditional methods didn't accurately capture the cyclical variations in output and employment. Contrary to popular belief, there wasn't a significant decrease in output volatility in 1984, but there was one in 1993/4. They also discovered a strong link between output and employment volatility. These findings challenge previous ideas about Australia's economic stability and have important implications for policy decisions.