Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion that the unemployment rate is a lagging indicator of the economic condition of a country is true. Unemployment rate refers to the percentage of the labor force that is unemployed and actively seeking employment. It is typically calculated based on past data and reflects the state of the labor market after economic changes have occurred. When there is a decline in economic activity, such as during a recession, businesses may reduce their workforce, leading to an increase in unemployment. Conversely, during periods of economic growth, businesses may expand and create more job opportunities, resulting in a decrease in unemployment. Therefore, changes in the unemployment rate are observed after changes in the economic conditions of a country.

The reason provided in the statement is also true and serves as the correct explanation for the assertion. Unemployment data reflects the impact of economic changes after they have occurred. It takes time for the effects of economic changes to translate into changes in the labor market, as businesses adjust their workforce based on the prevailing economic conditions. Therefore, the unemployment rate is considered a lagging indicator, reflecting the economic conditions that have already transpired.

Hence, both assertion and reason are true, and the reason is the correct explanation of the assertion.