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Question : Assertion: Technological advancements can have no impact on aggregate supply.

Reason: Technological advancements primarily affect individual businesses and do not have a significant impact on the overall supply in the economy.

Option 1: Both Assertion and Reason are correct, and the Reason is the correct explanation of the Assertion.
 

Option 2: Both Assertion and Reason are correct, but the Reason is NOT the correct explanation of the Assertion.
 

Option 3: Assertion is correct, but the Reason is incorrect.

 

Option 4: Assertion is incorrect, but the reason is correct


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Assertion is correct, but the Reason is incorrect.

 


Solution : The answer is(C) Assertion is correct, but the Reason is incorrect.

The Assertion is correct. Technological advancements can indeed have a significant impact on aggregate supply in the economy. When businesses adopt new technologies, it can lead to increased productivity, efficiency, and lower production costs. This, in turn, can result in an increase in the overall supply of goods and services in the economy.

The Reason is incorrect because technological advancements can have a spillover effect on other businesses and industries, leading to a broader impact on aggregate supply. For example, a technological advancement in one sector, such as robotics or automation, can have ripple effects across multiple sectors, influencing their productivity and supply capabilities.

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