In the United States a large number of states are required to have an annually balanced budget,which worsens the severity of the business cycle.

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States in the United States are required to have an annually balanced budget, meaning that they must maintain a balance between their expenditures and revenue for each fiscal year. This requirement can worsen the severity of the business cycle as the states cannot run a deficit during economic downturns, which could have been used to stimulate economic growth. Instead, they may have to cut spending or raise taxes, which can further slow down the economy.

In the United States a Large Number of States Are