Question

fiscal deficit was 4 % of the GDP in 2015and that increase to 5% in 2016, if the GDP increase by 10% from 2015nto 2016 , the percentage in the actual fiscal deficit is how much?​

Answer 1

QUESTION:

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,then the percentage change/increase in the actual fiscal deficit is how much?

ANSWER:

GDP in 2016=(110/100)*GDP in 2015

Fiscal deficit in 2015=4 % of GDP in 2015

Fiscal deficit in 2016=5% of GDP in 2016

                                 =5% of(1.1*GDP in 2015)

                                 =5.5% of GDP in 2015

$Percentage change=\frac{5.5-4}{4} *100 %$ %

$=\frac{300}{8} %$%=37.5 %

Hence,percentage increase/change in actual deficit is 37.5%