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)- Microeconomics is alternatively called the theory of income and unemployment.
Reason (R)- In macroeconomics, we try to understand how the level of income and employment is determined.

(A) Is false but (R) is true.

The correct answer is Option 4: (A) Is false but (R) is true.

Assertion (A)- Microeconomics is alternatively called the theory of income and unemployment. This is incorrect. Macroeconomics (not Microeconomics) is alternatively called the theory of income and unemployment. Microeconomics focuses on the behavior of individual consumers and firms, and how they make decisions about prices, production, and consumption.

Reason (R)- In macroeconomics, we try to understand how the level of income and employment is determined. This is correct. In macroeconomics, we try to understand how the level of income and employment is determined and how unemployment can be removed. So, macroeconomics basically deal with the economy as whole and solves the problems relating to inflation, money supply, unemployment, national income etc.