In Some European Countries,labour-Market Policies Make It Very Costly for Firms

In some European countries,labour-market policies make it very costly for firms to lay off or fire workers.Theory and evidence tells us that

A) European unemployment is lower because workers are less likely to lose their jobs during an economic downturn.
B) these policies have no effect on wages or employment in the long run.
C) the European experience is more consistent with market-clearing theories of unemployment than that of Canada or the United States.
D) these policies reduce labour-market flexibility and tend to increase unemployment.
E) cyclical unemployment will always be higher in these European countries than in Canada or the United States.