GATE Mechanical Engineering (ME) 2019 Shift 2 Solved Paper

Question : 7 of 65

Marks: +1, -0

Fiscal deficit was

4 \%

of the GDP in 2015 and that increased to

5 \%

in 2016 . If the GDP increased by

10 \%

from 2015 to 2016, the percentage increase in the actual fiscal deficit is _____________

Solution:

Let the GDP in

2015=x

Then, the GDP in 2016 will be

=1.1 {x}

So, fiscal deficit in

2015=0.04 × x=0.04 x

And the fiscal deficit in

2016=0.05 × 1.1 x=0.055 x

Increase in fiscal deficit

=0.055 x-0.04 x=0.015 x

So, the percentage increase in fiscal deficit

=\;{0.015 x}/{0.04 x} × 100=37.5 \%

Go to Question:

Prev Question

Next Question