The term describing a two-level government, that is, state government and the federal government is federalism.
A federal government is the central government of a US country that regulates the government at the national level.
Federalism is the process where the powers of government are divided into two tiers, that is, state government and federal government. This resulted in creating an influence of both governments over the country rather than giving all powers to one government.
Therefore, the formation of two governments, that is, state and federal government is considered the process of federalism.
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