Economics · Economy
In the context of fiscal policy management, the term 'Fiscal Glide Path' most appropriately refers to:
- 1An immediate compression of public expenditure undertaken to eliminate the fiscal deficit within a single financial year.
- 2A trade policy intervention aimed at correcting external imbalances through tariff rationalisation.
- 3An expansionary fiscal stance characterised by a deliberate increase in capital expenditure to stimulate aggregate demand.
- 4A calibrated and phased reduction in fiscal deficit targets over a defined medium-term framework.✓
Correct answer
A calibrated and phased reduction in fiscal deficit targets over a defined medium-term framework.
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