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.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: (A) Is true but (R) is false.
Assertion (A): "Both microeconomics and macroeconomics are interdependent on each other." This statement is true. Microeconomics (study of individual units) and macroeconomics (study of the economy as a whole) are interdependent. For example, aggregate demand (a macroeconomic concept) is based on the decisions of individual consumers and firms (microeconomic units).
Reason (R): "Macroeconomics is not always restricted to individuals whereas microeconomics deals with aggregates at a larger level." This statement is false. Macroeconomics deals with aggregates such as national income, overall employment, inflation, etc. On the other hand, microeconomics deals with individual decision-making units like households and firms, not with aggregates.