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Inside Report (1)

Time to start painting the ''Reelect Reagan'' signs?

Labor Secretary Raymond Donovan looks for President Reagan to seek and win a second term. Donovan says Reagan's policies have curbed ''excessive taxation, uncontrolled government spending, runaway inflation, and high interest rates.'' Unemployment, he admits, ''has gotten worse.'' With the recession ''about over, '' he says, the nation's 10.1 jobless rate should drop by year end.

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Donovan says he hopes to stay around ''for the double-feature.''