Final answer:
Businesses should be well-informed about government policies and regulations that can impact hiring and growth within their industry, as these rules can either hinder or promote business expansion and affect the labor market.
Step-by-step explanation:
Businesses should be aware of government policies and regulations which may affect their industry. For instance, on the demand side of the labor market, government rules can discourage firms from hiring by making it difficult for businesses to begin or to expand through excessive bureaucratic processes and restrictive regulations. A government may need to reconsider the design of these policies to avoid discouraging the supply and demand for labor, thereby carefully considering the tradeoffs regarding unemployment and economic growth.