Economics Assignment - Elasticity, Fiscal and Monetary Policies

This economics assignment delves into two primary areas: price elasticity and macroeconomic policies. The first part examines own-price elasticity, differentiating between elastic and inelastic demand for various goods like milk, fruits, vegetables, and sugary snacks, and discusses how government interventions, such as taxes and subsidies, can influence consumption patterns. The second part analyzes Keynesian policies implemented during the Great Depression, focusing on boosting aggregate demand through government spending and monetary policy adjustments like interest rate cuts. It further explores the impact of fiscal policies, including expansionary and contractionary measures, on economic output, price levels, and national savings, contrasting them with the effectiveness of monetary policy tools in stabilizing the economy. The assignment concludes by referencing key economic literature to support its analysis.