Final answer:
The term 'federal' relates to a system where power is divided between a central authority and states, while 'national' refers to the central government itself. The U.S. employs a federal system with distinct national powers and state responsibilities, achieving national unity through mechanisms like Fiscal Federalism.
Step-by-step explanation:
The terms “federal” and “national” often appear to be synonymous, but they actually refer to different concepts within the context of a governmental system. The word “federal” pertains to a system of government where power is divided between a central authority and constituent political units, like states or provinces. Contrarily, “national” government typically refers to the central government itself that handles matters affecting the country as a whole. In the United States, the federal system consists of national powers and states' powers, with some responsibilities being exclusive to the national government, such as coining money and declaring war, while others are reserved for the states or shared.
Fiscal Federalism is a means by which the national government exercises its influence over the states, using financial mechanisms to achieve national cohesion in areas like transportation and public safety. Additionally, in federations, the central government might allow regional groups certain autonomies to preserve cultural distinctions within a unified nation.
In conclusion, while the national government has central features, the system as established by the U.S. Constitution is both national and federal in practice, operating with a division of powers and functions that serve to maintain a balance between unity and state sovereignty.