A Tax on Productive Activity Tends To:​

A tax on productive activity tends to:​

A) increase the real gross domestic product of an economy by increasing prices.
B) increase the gross domestic product of an economy by decreasing the opportunity cost of leisure.
C) decrease formal market activity because it lowers the return on such activity.
D) decrease activity in the underground economy because people are afraid of being connected with tax fraud.
E) increase the gross domestic product of an economy by increasing reporting of all market activities.