Question

Assertion (A): Full employment is the situation where 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 only when the economy is in equilibrium.

Options

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

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

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

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

Answer 1

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

Explanation:

The term "full employment equilibrium" refers to a scenario in which aggregate demand and aggregate supply are equal at full employment.