Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below:

Assertion (A) : A rise in aggregate demand and aggregate supply of goods and services raises National Income.

Reason (R):National income represents the value of aggregate production in monetary terms.

 Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A)

The correct answer is option 2: Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A).

Assertion (A) : A rise in aggregate demand and aggregate supply of goods and services raises National Income. This is correct. An increase in both aggregate demand (total demand for goods and services in an economy) and aggregate supply (total supply of goods and services in an economy) can lead to an increase in national income, as it indicates higher levels of economic activity and production.

Reason (R):National income represents the value of aggregate production in monetary terms. This is also correct.National income is a measure of the total monetary value of all goods and services produced within a country's borders in a specific time period. It reflects the aggregate production of an economy.

While both the assertion and the reason are true, the reason does not directly explain why a rise in aggregate demand and aggregate supply raises National Income. National income represents the total value of goods and services produced within a country's borders in a given time period, whereas the reason only states that national income is the value of aggregate production in monetary terms, without directly linking it to changes in aggregate demand and supply. Reason (R) provides a general description of what national income represents.