Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): The level of unemployment in the economy as a whole is studied in macroeconomics.
Reason (R): Macroeconomics focuses on aggregate measures such as total output, employment and the aggregate price level.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): The level of unemployment in the economy as a whole is studied in macroeconomics. — True. Whether the resources of the economy, such as labour, are fully employed is one of the questions of macroeconomics.
Reason (R): Macroeconomics focuses on aggregate measures such as total output, employment and the aggregate price level. — True. Macroeconomics looks at the economy as a whole through such totals.
Why R explains A?
Unemployment in the whole economy is a matter of total employment, one of the aggregate measures in R. Because macroeconomics studies these totals, it studies unemployment.
NCERT (2026-27): “1.5 Microeconomics and Macroeconomics Traditionally, the subject matter of economics has been studied under two broad branches: Microeconomics and Macroeconomics. In microeconomics, we study the behaviour of individual economic agents in the markets for different goods and services and try to figure out how prices and quantities of goods and services are determined through the interaction of individuals in these markets. In macroeconomics, on the other hand, we try to get an understanding of the economy as a whole by focusing our attention on aggregate measures such as total output, employment and aggregate price level. … Some of the important questions that are studied in macroeconomics are as follows: What is the level of total output in the economy? How is the total output determined? How does the total output grow over time? Are the resources of the economy (eg labour) fully employed? What are the reasons behind the unemployment of resources? Why do prices rise?” |