Question

Assertion (A): Full employment is the situation when all those workers who are able to work and willing to work get employment at the prevailing wage rate.

Reason (R): The situation of full employment is achieved when aggregate demand equals aggregate supply.

विकल्प

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation for Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation for Assertion (A).

• Assertion (A) is true but Reason (R) is false.

• Both Assertion (A) but Reason (R) are false.

Answer 1

Assertion (A) is true but Reason (R) is false.

Explanation:

Assertion (A) is true, as it accurately defines full employment as a state where all willing and able workers find jobs at prevailing wages. Reason (R) is false because the condition AD = AS merely establishes macroeconomic equilibrium, which can frequently occur at an underemployment level.