Suppose that an increase in personal income taxes causes aggregate demand to decrease so that the economy moves to a new -run equilibrium. In this _ phase of the business cycle, real GDP declines. The economy will reach a trough, or the lowest point in the business cycle. Over time, as nominal wages and costs of other resources fall, the economy begins to recover. Aggregate supply shifts to the _ so that output expands and the price level falls further. Eventually, the economy moves to a new _-run equilibrium at a lower price level and full-employment output