It is argued that a policy of tax simplification will result in: + LRAS, LRAS2 O A. A shift from LRAS, to LRAS2 with higher output at a lower price 118- level. 114- A O B. A shift from LRAS2 to LRAS, with a higher price level and lower output. 110- B O C. A shift from LRAS, to LRAS, with a lower price level and higher 106- output. Price Level D. A shift from LRAS, to LRAS, with lower output at a lower price 102- level. 98- AD 1 94- 90- N- 6 8 10 12 14 16 Real GDP