The amount by which the actual aggregate demand exceeds the aggregate supply corresponding to the full employment level in the economy is known as ______.

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The amount by which the actual aggregate demand exceeds the aggregate supply corresponding to the full employment level in the economy is known as excess demand and inflationary gap. Explanation: When aggregate demand exceeds aggregate supply at full employment, it leads to excess demand or an inflationary gap. This causes upward pressure on prices, leading to demand-pull inflation in the economy.

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