Read the following statements - Assertion (A) and Reason (R):
Assertion (A): The total flow of production in the economy, is measured by the aggregate level of final goods produced in the economy.
Reason(R): Counting intermediate goods in production, gives a precise and effective measure of economic activity.
From the given alternatives choose the correct one:

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

The correct answer is Option 3:  Assertion (A) is true but Reason (R) is false.

• Assertion (A) is true because the total flow of production in the economy is indeed measured by the aggregate level of final goods produced. This is because final goods are those that are counted in GDP to avoid double counting of intermediate goods.

• Reason (R) is false because counting intermediate goods in production would not give a precise measure of economic activity, as it would lead to double counting. The correct measure of economic activity focuses on final goods to accurately reflect the value of production.