Question 22
Increase of a number from 150 to 162 is equal to increase of ___ per cent.
Initial number = 150 Final number = 162 Increased number = 162 -150 = 12 Per cent of increased number =12150×100=12015=8%
In the above question, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.