Problem 2: Long-Term Government Deficit: [111 Points] Suppose that a local economy has the following values for Desired C, I, G, and N11 at a price level of 11111 given by: c = 0.000 + 0.0(1 or 1 = 3.100 0 = 000 NX = 2,000 0.00? The tax: rate {t} is equal to 111%. For every 51 increase in the price level, Autonomous Consumption [C] and Autonomous Investment {I} each decrease by 51. It also has an aggregate supply [AS] given by: AS = 2p 11]. What is the ShortRun Real GDP in this economy? Show your work. [4 points] 11. Is this economy running a primary budget surplus or a primary budget deficit? How large is it {in dollars]? Show your work. [2 points] Suppose also that this government has an outstanding debt of $11],11111], owed with an interest rate of 1%. 12. Is this economy running a total budget surplus or a total budget deficit? How large is it [in dollars]? What is this countrys debttoGDP ratio? Show your work. [2 points] Suppose that the above questions [[1111 {111] is only for the year 21111]. Assume that everything is the same [Ceteris Paribus] in 21111 and 21112 as it was in 211111, with the exception of the outstanding debt owed by the government. 13. What will be the total budget deficit in 21111? What about in 21112? Show your work. [2 points]