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答The term "fiscal cliff" refers to a combination of tax increases and spending cuts that were set to take effect at the end of 2012. These measures were put in place as part of a bipartisan agreement to address the growing national debt and budget deficit.The tax increases were a result of the expiration of the Bush-era tax cuts, which had been extended temporarily in previous years. The spending cuts were a result of the Budget Control Act of 2011, which implemented automatic across-the-board cuts to both defense and non-defense spending.The concern was that if these measures were allowed to take effect as scheduled, it would have a significant negative impact on the economy. The tax increases would have reduced disposable income for individuals and businesses, potentially leading to decreased consumer spending and investment. The spending cuts would have resulted in reduced government spending, which could have had a negative impact on sectors that rely heavily on government contracts, such as defense.To avoid going over the fiscal cliff, Congress and the President reached a last-minute agreement in early 2013 to extend most of the tax cuts and delay the spending cuts for two months. This allowed more time for negotiations on a longer-term solution to the country's fiscal challenges.Since then, the term "fiscal cliff" has been used more broadly to refer to any situation where a combination of tax increases and spending cuts could have a negative impact on the economy. For example, it has been used to describe the potential consequences of failing to raise the debt ceiling or address long-term entitlement program costs.
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