Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative:

Assertion (A): Macroeconomics is also known as Income and Employment Theory.

Reason (R): Macroeconomics aims to determine income and employment level of the economy.

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 and 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

Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Macroeconomics is also known as Income and Employment Theory because it studies the determination of aggregate income and employment in an economy. It deals with the economy as a whole rather than individual economic units.