What are the advantages and/or disadvantages of using monetary policy instead of fiscal policy?

Economics Problems

PROMPT #1:  Does the existence of market failures mean the market system doesn’t work? Explain.

 

PROMPT #2:  Given that inflation exists to some extent every year, why don’t firms generally give at least cost of living raises every year to employees (which isn’t really a raise, but just keeping purchasing power the same)?

PROMPT #3:  Is achieving and/or maintaining economic growth a socially beneficial goal?  What might an alternative goal be?

PROMPT #4:  What did the recent “Sovereign Debt Crisis” in Europe have to do with Fiscal Policy?

PROMPT #5: What are the advantages and/or disadvantages of using monetary policy instead of fiscal policy?

PROMPT #6:  Is the increase in international trade a worthwhile trade-off for the increased globalization? Why? If not, how would you change the ways countries interact?

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