In the United States, which of the following is an example of a government-sponsored good?

Suppose that Paola Flygare, producer of the Flygare fiberglass bass boat, produces 8,000 bass boats, but consumers want 13,000 bass boats. Assuming other producers have also underproduced for the market, the most plausible consequence is

a. an increase in overall production and an increase in the economy's is unemployment b. a cutback in overall production and an increase in the economy's unemployment c. an increase in real GDP and a decrease in the economy's unemployment d. an increase in real GDP and an increase in the economy's unemployment e. no change, because Flygare will not alter its production plans due to short-run market changes

Over the past two decades the U.S. has persistently had trade deficits

a. True b. False Indicate whether the statement is true or false