Over full employment equilibrium is a situation in which AD = AS _______ the full employment level. Which of the following options suits best in the above blank? |
At Beyond Under None |
Beyond |
The correct answer is Option 2: Over full employment equilibrium Over full employment equilibrium is a situation where aggregate demand (AD) equals aggregate supply (AS) beyond the full employment level. This means that the economy is producing beyond its full capacity, often leading to inflationary pressures. |