If x is increased by 12% it is multiplied by 1.12:x + .12x = 1.12x
If y is decreased by 2%, it is multiplied by .98: y -.02y = .98y
1.12x/.98y = 6/7
You can multiply either side by 1 without changing its value. Multiply the left side by 1 in the form of 100/100 to remove the decimals.
112x/98y = 6/7
Multiply both sides by 98/112.
x/y = 6/7 * 98/112 = 6/7 * 7/8 = 6/8 = 3/4.