__________ refers to a situation when AD is equal to AS beyond the full employment level.

Full Employment Equilibrium

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Over Full Employment Equilibrium

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Underemployment Equilibrium

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None of these

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Solution

The correct option is C Full Employment Equilibrium
The over full employment equilibrium refers to the situation when the aggregate demand in the economy is equal to aggregate supply beyond the full employment level which means that the excess demand in the economy leads to high price and over utilization of resources.

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This type of unemployment can occur even in a situation of full employment.

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