Project ForgeGeneral Aptitude
Quantitative Aptitude
GATE 2019
Medium
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 _____.
- 37.50
- B35.70
- C25.00
- D10.00
Explanation
Let GDP(2015)=100, so deficit(2015) = 4% of 100 = 4. GDP(2016) = 100 x 1.10 = 110, so deficit(2016) = 5% of 110 = 5.5. Percentage increase in actual deficit = (5.5-4)/4 x 100 = 37.5%.
Source: GATE ME 2019 Session 2 (Set 3) (2019)
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