Special interest group Z receives a 1/200^th slice of the economic pie. Its net benefit from both an economic growth policy and a transfer policy is $60,000. How much does the size of the economic pie (Real GDP) need to grow before group Z is indifferent between the two policies?

Question

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The size of the economic pie (Real GDP) needs to grow by $12,000,000 before group Z is indifferent between the two policies. This is because group Z's net benefit from both policies is $60,000, and the size of the economic pie needs to grow by 200 times this amount in order for group Z to receive the same net benefit from both policies.

Special Interest Group Z Receives a 1/200th Slice of the Economic

Special Interest Group Z Receives a 1/200^th Slice of the Economic