This question requires an evaluation of the effectiveness of government policies in promoting sustainable economic growth. The answer should cover both demand-side and supply-side approaches:

Demand-side policies: These include fiscal policy (government spending and taxation) and monetary policy (interest rates and money supply).

• Fiscal policy: Expansionary fiscal policy (increased government spending or tax cuts) can boost aggregate demand and stimulate growth, particularly during recessions. However, it can lead to increased government debt and potential crowding out of private investment.
• Monetary policy: Lowering interest rates can encourage borrowing and investment, leading to higher growth. However, excessively low interest rates can lead to inflation and asset bubbles.

Supply-side policies: These aim to increase the productive capacity of the economy.

• Investment in education and training: Improves the skills of the workforce, leading to higher productivity.
• Deregulation: Reduces the costs of doing business, encouraging investment and innovation.
• Tax incentives: Can encourage investment and entrepreneurship.
• Infrastructure development: Improves productivity and connectivity.

The effectiveness of these policies depends on a range of factors, including the state of the economy, the credibility of government policy, and the responsiveness of businesses and consumers. The answer should also consider the potential limitations of government intervention, such as lags in policy implementation and the risk of unintended consequences. A balanced perspective is crucial, acknowledging both the potential benefits and drawbacks of government policies.

This question requires an assessment of the inherent tension between economic growth and environmental sustainability. The answer should explore the challenges and the role of government policy:

Challenges: Economic growth often relies on resource extraction and pollution, which can damage the environment. This can lead to climate change, loss of biodiversity, and other environmental problems. There is a fundamental conflict between short-term economic gains and long-term environmental well-being. Furthermore, the costs of transitioning to a more sustainable economy can be significant.

Government Policy: Governments can play a crucial role in addressing this challenge through a variety of policies:

• Carbon taxes and cap-and-trade systems: Make polluting activities more expensive, incentivizing businesses to reduce emissions.
• Investments in renewable energy: Promote the development and deployment of clean energy technologies.
• Regulations on pollution: Set standards for emissions and waste disposal.
• Subsidies for sustainable practices: Encourage businesses and consumers to adopt environmentally friendly behaviors.
• International agreements: Address global environmental problems such as climate change.

The effectiveness of these policies depends on factors such as political will, public support, and the availability of technological solutions. The answer should also consider the potential trade-offs between economic growth and environmental sustainability, and the importance of finding solutions that are both economically viable and environmentally sound. The concept of a 'green economy' should be discussed.

This question requires a detailed discussion of the trade-offs inherent in macroeconomic policy. The core of the answer should address the potential conflicts between the objectives. For example:

• Price stability vs. Full employment: Policies aimed at reducing inflation (e.g., higher interest rates) can often lead to increased unemployment. This is due to reduced aggregate demand.
• Full employment vs. Sustainable economic growth: Policies to stimulate employment (e.g., expansionary fiscal policy) might lead to inflation, hindering long-term growth.
• Sustainable economic growth vs. Reduced income inequality: Rapid growth can exacerbate inequality if the benefits are not widely distributed. Policies to reduce inequality (e.g., progressive taxation) might dampen growth if they are too stringent.
• Price stability vs. Sustainable economic growth: Maintaining price stability may require policies that restrict economic activity, potentially slowing growth.

The relative importance of each objective is debatable and depends on the specific context. A strong argument can be made for price stability as a prerequisite for sustainable growth, as high inflation creates uncertainty and discourages investment. However, full employment and reduced inequality are crucial for social stability and overall well-being. The 'best' balance is a matter of political and economic judgment. The answer should consider the role of government policy in achieving this balance, including the use of fiscal and monetary policy.