Suppose the city government of Boomville wins a bid to host the Olympics. To pay for the Olympic facilities, the government decides to impose a new, temporary tax on its firms. As a result of this tax,
a. employment will increase and TFP will increase.
b. labor supply will decrease and the real wage will decrease.
c. employment will decrease and the real wage will increase.
d. employment will decrease and the real wage will decrease.