Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Read the following statements - Assertion (A) and Reason (R):
Assertion: Macroeconomics does not have deep roots in Microeconomics.
Reasoning: Macroeconomics has to study the aggregate effects of the forces of demand and supply in the markets.
From the given alternatives choose the correct one:

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.

Correct Answer:

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

Explanation:

The correct answer is option 4 :Assertion (A) is false but Reason (R) is true.

Assertion: Macroeconomics does not have deep roots in Microeconomics. This is incorrect. Macroeconomics has deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets. Microeconomic principles like supply and demand form the foundation for understanding how individual markets behave. Macroeconomics then builds upon these microeconomic concepts to analyze how these individual behaviors aggregate and influence the entire economy.


Reasoning: Macroeconomics has to study the aggregate effects of the forces of demand and supply in the markets. This is correct. Macroeconomics does indeed study the aggregate effects of demand and supply forces in markets. It looks at how these forces interact across all markets in an economy to determine factors like national output, inflation, and unemployment.