An Increase in Income Taxes

An increase in income taxes

A) does not affect potential GDP because potential GDP depends on technology only.
B) does not affect potential GDP as long as the economy's endowments of resources and the state of technology remain unchanged.
C) increases potential GDP because workers have to work longer hours to maintain the same standard of living before the tax increase.
D) decreases potential GDP because workers' incentives to work are weakened.
E) decreases potential GDP because real GDP decreases when households have less disposable income to spend.