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GATE 2019 ME (ME2) – Question 6

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 2 marks · Multiple choice

Fiscal deficit was 4% of GDP in 2015 and increased to 5% in 2016. GDP increased by 10% from 2015 to 2016. Find the percentage increase in actual fiscal deficit.

  1. 37.50
  2. 35.70
  3. 25.00
  4. 10.00

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Correct answer: (A) 37.50

Explanation

Take initial GDP as 100. Deficit is 4; new GDP is 110 and deficit is $0.05(110)=5.5$. The increase is $(5.5-4)/4\times100=37.50\%$. **A**.