1. Draw a correctly labeled AS/AD graph showing an economy in long-run equilibrium. a. On your graph above, show the effect of an increase in personal income taxes. b. As a result of the shift in your graph, what will happen to output, nominal wages and real wages, and the price level in the short run? Output will Price level will Nominal wages will Real wages will c. What will happen to output and the price level when the economy moves to long-run