Consider the Following Statement: "With Unemployment at Its Highest Level

Multiple Choice

Consider the following statement: "With unemployment at its highest level in years,Canada needs to protect domestic jobs by promoting a "Buy Canadian" policy." This statement is ________ because ________.

A) incorrect; it confuses the real and nominal gains from trade
B) incorrect; it fails to recognize that imports of foreign goods also help to encourage the export of domestic goods
C) correct; it recognizes that such a policy can sustain high levels of domestic employment
D) correct; a "Buy Canadian" policy will take advantage of Canada's comparative advantage
E) incorrect; it will work against Canada's pattern of absolute advantage