Question: 4. Consider two states A and B. Data on differences in UI programs across states show that State A has a much wider range in

4. Consider two states A and B. Data on differences in UI programs across states show that State A has a much wider range in the payroll tax rates paid by different experience-rated firms than does State B.

(a) Which states system subsidizes firms with high layoff rates to a greater degree? Explain.

(b) Which state is more likely to have a higher unemployment rate? Explain.

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