Practicing Success
Practicing Success
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In the question given below, there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options. Assertion (A)- Both microeconomics and macroeconomics are interdependent on each other. Reason (R)- Macroeconomics is not always restricted to individuals whereas, microeconomics deal with aggregates at larger level.
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Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation of (A). (A) Is true but (R) is false. (A) Is false but (R) is true. |
(A) Is true but (R) is false. |
Macroeconomics deals with aggregate variables and an overall economy or market system, its behavior, and the factors that drive it. While microeconomics deals with individual units only. But both are interdependent as microeconomics is not always restricted to individual units and also macroeconomics deals with the aggregates at a smaller level. For example, an increase in the income tax rate would influence an individual's decision to a buy fridge as its price goes up. And the price of a commodity is influenced by the general price level in the economy. |
