The state of California has a chronic budget deficit

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The state of California has a chronic budget deficit. In 2009 and 2010, the state has raised taxes and fees and cut spending, which slowed the economic expansion in this state. The state government is doing this despite the bad economic impact because:

(a) it has a balanced-budget requirement.

(b) it has automatic destabilizers.

(c) it has a progressive tax policy that calls for higher taxes each year.

(d) it had to balance out the Federal tax cuts and increased spending.