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Now consider that in in the following year (2017), the government decided to implement a policy aimed at moving the economy to full employment. In
Now consider that in in the following year (2017), the government decided to implement a policy aimed at moving the economy to full employment. In its decision to move the economy to full employment, they used government spending as the policy tool. The structure and xed spending behaviors remain the same as they were in 2016, except for government spending. In addition, changes to the population's birth, mortality, and net migration levels were such that the population remained at 400 million. The policy was implemented, and it was successful in achieving its primary purpose. Now suppose that a new government is installed in 2018' Unlike the preceding government, the new government is concerned about the government's budget balance from 2017. Specifically, the government would like to achieve a balanced budget. To achieve this goal, the new government decided to use net taxes (specifically, fixed taxes) as its policy tool. The structure and fixed spending behaviors remain the same as they were in 2017 except for fixed taxes (which is currently equal to zero). In addition, changes in the population's birth, mortality, and net migration levels were such that the population remained at 400 million. The policy was implemented, and it was successful in achieving its primary purpose. What was the change (from 2017) in government's budget balance the resulted from the government's policy in 2018? (report your answer to 2 decimal places)
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