New model reveals how wages and prices are intertwined in Australia
The study developed a model to understand how wages and prices in Australia are connected. By looking at both variables together, the researchers found that they influence each other. They used a theoretical framework to estimate how wages and prices change over time. The model also considered factors like unemployment and productivity. The results show that wage and price inflation in Australia are determined together. This information can help us understand how the economy works and how it might respond to different situations.