(Appendix) The Unemployment Insurance Modernization Act was included in the fiscal stimulus package of early 2009. The act was designed to modernize and make corrections to serious defects found in existing state unemployment compensation programs.

a. Explain the major defects present in most state unemployment compensation programs.

b. Describe the basic characteristics of the Unemployment Insurance Modernization LO5 Act.

c. Explain how the act attempts to correct for the defects listed in (a)

above.