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Consider the following two proposals to reform unemployment insurance. Briefly explain the arguments for and against each reform.
a. The insurance payment would be increased so that it replaced 100% of a worker's regular labour income for 26 weeks.
b. Each worker would be paid a lump-sum equal to 10 weeks of his or her labour income at the start of the spell of unemployment. There would be no other payments
Please answer these questions above
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