Reducing Unemployment in Australia: Lower Wages or Economic Growth?
The two papers discussed in the article explore ways to reduce unemployment in Australia by either lowering real wages or increasing economic growth. They both suggest that macroeconomic factors can play a significant role in decreasing unemployment. However, they do not fully address whether macroeconomic policies or labor market details are more effective in reducing unemployment. Additionally, the difference between open and closed economies in modeling the labor market is highlighted as an important factor to consider.