The correct answer is Inflationary gap .

In macroeconomics, the equilibrium level of real GDP is the level of output where aggregate demand (AD) is equal to aggregate supply (AS). The full employment level of GDP is the level of output where all available resources in the economy, such as labor, capital, and land, are being used efficiently, without causing inflationary pressures.

When the equilibrium level of real GDP exceeds the full employment level of GDP, it creates an inflationary gap, also known as a positive output gap. This means that the economy is producing more goods and services than it can sustain in the long run, and this leads to upward pressure on prices.

Inflationary gaps occur when aggregate demand is higher than aggregate supply, and the excess demand leads to price increases. This situation can arise due to factors such as increased government spending, higher investment, or increased consumption by households. It can also be caused by a combination of factors such as low interest rates, easy access to credit, and high consumer confidence.

The inflationary gap can be corrected through fiscal and monetary policy measures. Fiscal policy measures such as increasing taxes, reducing government spending, or reducing transfer payments can reduce aggregate demand and help bring it back to the full employment level. Similarly, monetary policy measures such as increasing interest rates, reducing the money supply, or increasing reserve requirements can reduce aggregate demand and help control inflation.

To summarize, the amount by which the equilibrium level of real GDP exceeds the full employment level of GDP is called the inflationary gap, and it indicates that the economy is producing more than it can sustain in the long run, leading to upward pressure on prices.