Final answer:
Neoclassical economists believe that the government does not need to do much about unemployment, instead focusing on reducing the natural rate of unemployment through policy changes. However, they caution against excessive regulations that could limit hiring.
Step-by-step explanation:
The neoclassical economists believe that the government does not need to do much about unemployment because they focus on addressing the natural rate of unemployment, rather than cyclical unemployment caused by recessions. They suggest that policy changes, such as redesigning unemployment and welfare programs to provide support while encouraging job-hunting, can help reduce the natural rate of unemployment. However, they caution that government intervention should not become intrusive to businesses, as excessive regulations may restrict hiring.