According to the Neo-Classical Model, What Would Not Result from the Government

According to the neo-classical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

A) Firms would be less likely to lay off workers.
B) Firms would be less likely to hire workers.
C) Moral hazard would encourage workers to not work as hard as before.
D) The long-run employment rate would increase.
E) Unemployed workers would remain unemployed for longer periods of time.

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